HUGE Upcoming IPOs: Stripe, Rivian, Instacart - YouTube

It’s been a little while…but I’m back. And I thought what better way to return than

to talk about the next wave of upcoming IPOs…but not just any IPOs, I’m looking at huge,

mainstream companies that have been making moves that could lead them to finally pull

the trigger on going public sooner rather than later.

Hey everyone, welcome to Healthy, Wealthy, and Wise…for anyone new here, I’m Kevin.

And if you’re not new here, well then, I want to remind you that I’m Kevin…because

I know it’s been awhile since my last video and I’m so glad that you guys have come

back. Let me say quickly for now, this break wasn’t planned, so I apologize for not giving

you guys a heads up, but I didn’t expect to not make a video for so long and I’ll

tell you more about why that happened at the end of the video if you’re interested. But

first, since I know that many of you that have been with me and the channel love hearing

about IPOs, I figured that I would cap my apology with a video on some of the top upcoming

IPOs that I know many of us are looking forward to.

And to get us started, let me give you an update on a company that we’ve talked about

before and that’s Instacart. Many of you are familiar with them as the company that

operates a grocery delivery and pick-up service through the use of its website and its mobile

app. And as we know, they were huge during the beginning of the pandemic when more people

were needing groceries as we were eating at home as restaurants were closed, but also

as people were nervous going into the stores. And that lead to huge growth in 2020, with

Instacart being reported to have generated approximately $1.5B in net revenue in 2020

and turning profitable on an adjusted basis for the last 3 quarters of 2020.

So I last talked about them a few months ago, and at that time I expected that they were

looking to go public fairly soon for a few reasons. One was, of course they just had

this major year of growth they could capitalize on, sort of like what DoorDash did with their

IPO, so the timing made sense. My thinking was that by waiting, they would be at risk

for having to show revenue decelerating, which I would expect to happen as more of the economy

was opening up in the spring. And then also at that time, we had heard that they selected

Goldman Sachs to head up their IPO. But, after what happened with DoorDash and Airbnb, there

were also reports they were considering a direct listing, like how Roblox switched their

plans up, and in that case, Instacart would just use Goldman as an advisor. And then to

go with that, early this year, they had a private fund-raising round, raising $265 million,

upping their valuation to $39B, which, by the way, was more than double from a round

in October of last year when they were valued at $17.7 billion. Now having watched companies

like Roblox and Coinbase holding private fundraising rounds right before registering for a direct

listing, I felt like they were getting close. Obviously that hasn’t happened yet…and

I’ll just say this for anyone new to the channel; if you’re not sure what a direct

listing is or how it’s different from a traditional IPO, I’ll link a video I made

earlier this year that tells you more about them in the description.

Now also back in March, we talked about how Instacart had just added Frank Slootman to

their board of directors, who is well known in investing circles for having taken 3 big

companies public, including last year’s darling Snowflake. Which again, was another

sign to me that an Instacart IPO or a direct listing could be imminent. But again, nothing

came as far as any concrete plans or filings. Well now, just recently Instacart seems to

making more moves to go public, and I say that because they’re making some changes

at the top, in hiring both a new CEO and new president. Now at first glance, big changes

at the top may not seem like a good time for the company to go public, so that could mean

that an IPO is not imminent. But when you consider that both of the women appointed

to those roles worked at Facebook at the time that company went public, then we start to

see how this could be the next step in transitioning to a public company. And it’s not like the

people they are replacing went anywhere, in fact one of them was the founder; they’ve

just moved into different roles with different focuses... and maybe some of those focuses

are looking to a public listing. Now as far as when an IPO or direct listing

will happen, I don’t have anything concrete. I’ve heard some recent rumors of a listing

in the 4th quarter of 2021, but personally, I could see this slipping into 2022 as the

two new executives get settled into their roles. Having said that, I would be really

surprised if an Instacart IPO didn’t happen at least by sometime next year at the latest.

And if that doesn’t happen, in my mind that would be concerning as to how to their business

is going as the pandemic’s effect on the economy weakens…I mean, nobody wants to

go into an IPO with declining financials, which is what I alluded to a couple of minutes

ago. Not saying that’s happening or going to happen, but the timing could be affected

by what’s happening in the economy. Okay, so that's the latest I have for you on an

Instacart IPO. Up next, we have a couple of companies that

there’s a lot of interest in. And I know that from many of you in your comments in

previous videos. So let’s talk about a huge one, in fact the one with the biggest valuation

we’ll talk about today and that’s Stripe. Now, if you're wondering why I didn’t leave

Stripe, as the most valuable company out there to the end, well, it’s because it’s probably

the one I’m least sure of when they could hold an IPO. But, I have to say that there’s

one reason why I think it could come sooner than later, and I’ll tell you why in a minute.

But first let’s talk a little bit about Stripe and why a Stripe IPO would be huge.

First of all, Stripe is a financial technology, or fin-tech company, and as you know, those

types of companies are all the rage in the market. I keep thinking about when I first

talked about Upstart here before their IPO and what happened with that company’s stock…wow.

And then of course there are some of the more familiar names of these types of companies,

ones like PayPal and Square that move a lot of money around, but they’re not banks,

and therefore don’t have the same amount of costly regulations that traditional banks

have to deal with. So as far as Stripe, what do they do? Well,

while they’re expanding with other products and services, they’re primarily known for

processing hundreds of billions of dollars in e-commerce transactions every year, where

they charge 2.9 percent of the total transaction value and 30 cents for each payment transaction.

And that, in today’s increasingly digital world, adds up. According to reporting from

the Wall Street Journal, Stripe generated $7.4 billion in revenue in 2020—that was

up 70 percent from the previous year. So this was another company that benefited from consumer

behavior changes brought on by the pandemic, as, more people were buying more things online

while they were stuck in their homes. And, let me tell you, they count some big-name

companies as customers. Instacart, who we just talked about, they’re one. Google is

another. Wayfair, Peloton, Shopify, Amazon…all customers, and as you can imagine, all customers

with a lot of transactions. Now as you know, there are other payment processing

companies out there. So they do have competition, but it may not be as direct as it might appear.

For instance, PayPal, with its early relationship with eBay focuses on online payments that

focuses more on individuals setting up and using accounts to transfer money electronically,

whereas Square is focused more on in-store merchant payments. Stripe is a little different

as they focus on building developer-friendly code to add to a customer company's website

to process the payments. I probably simplified this a little, but I think it gives a little

better idea on how they’re somewhat different from each other.

Anyway, so that’s some background on Stripe. As far as an investment, well private investors

love them. In fact, according to Crunchbase, they are the U.S.’ most highly valued venture-backed

private company at a valuation of $95 billion. And Stripe counts Elon Musk and Peter Thiel

as early investors; a couple of guys that were very involved in PayPal at the beginning...

So I'm sure that fact alone gives further validation to the company if those guys wanted

to be involved with Stripe. Now as I said, I don’t know if a Stripe

IPO is imminent, because accessing capital has not been a problem for them, so it’s

not like they need to have an IPO. But there are a couple of things that might point to

an IPO coming up in the near future. One is that the company has been around since 2010,

so not old, but not new, and then when they got that latest valuation of 95 billion, that

came at a Series H round. That’s a lot of rounds, so they’re pretty mature as far

as a private company goes. And then the second reason I could see a Stripe IPO sooner than

later is that the company, much like we talked about with Instacart, they’ve been making

some moves on their team, hiring the CFO from publicly-traded GM to be their CFO last October

and they’ve also added a couple of new board members this year. Again, this doesn’t mean

that they’re going to be making a move soon, but there just comes a time when an IPO makes

sense, because it's one of the best ways for early investors to realize their gains and

I think, 11 years in, Stripe is at that point. So, I think we need to keep an eye on Stripe.

Now if any of you have heard anything else on Stripe plans to go public, definitely share

it with us in the comments. Okay, just real quick, if you’re enjoying

this video, please subscribe if you haven’t already done that, and also, please hit that

like button; not because I need to feel liked for my ego, although, that's nice, it just

helps me to know you like videos like this so I know to keep making them. Plus it also

helps YouTube to know to send it to more people, and as I’ve said before, the more we can

grow the channel, the more I’ll do here. And I’ll talk a little more about this at

the end of the video. Alright so the last company I want to talk

about is Rivian. Now this is a company I’ve personally had my eyes on for some years now

and there seems to be more and more buzz that a Rivian IPO could be just around the corner.

So let’s talk a little more about what the company does and then why we think an IPO

could be happening sooner than later. Now, if you’re into cars in general or investing

in EV’s, you probably already know that Rivian is a company that is looking to bring

both an electric truck called the R1T and an electric SUV called the R1S to market soon.

Now the company has actually been around since 2009, but really it was only after the first

4 years or so they put their focus on electric trucks and SUV’s. And they claim that their

vehicles are built to actually take on rugged terrains, so they’re not just trying to

build an EV that looks like a truck, but one that actually acts like one as well.

Now when I first saw pictures of the R1T and R1S a few years ago, I knew they had something

interesting; first of all, EVs that were being made were mostly traditional cars and yet

the market, particularly in the US, was going full-steam in on trucks and SUVs. So right

off the bat, I was interested in their strategy. Now when I first saw those pictures, I didn’t

love all of the design elements, but I still liked a lot of it. And this was well before

Tesla released images of the Cybertruck, which, I’m not going to lie, when I saw that truck,

I did not like it…at all. And I still don’t…even though I can appreciate if someone wants something

radically different, they would now have an option. So even though I was worried for Rivian

when I heard Tesla was coming out with their truck, but then after seeing it, I figured

people like myself that like traditional styling weren’t going to be too interested in the

Cybertruck which meant that they probably weren’t going to have to compete directly

with Tesla, as I just see them as really being too different and appealing to different customers.

Anyway, so in their development, I obviously wasn’t the only one intrigued with Rivian.

Amazon became a big investor in the company, and not just from an investment perspective

as they also ordered 100,000 vans to be delivered to them by 2030.

Another big name was Ford getting involved soon after Amazon. And I was wondering at

one point if Ford might try to just outright acquire them, particularly after it was reported

that Rivian was going to build an SUV for them under the Lincoln name. However, those

plans were later scrapped and now Ford is looking to now build that SUV on its own,

as they also have plans to build other electric versions of other vehicles, including its

flagship F-150 truck, so it’s an interesting relationship.

Now at this point, with production occurring in Illinois, Rivian is on track to come to

the US market with its R1T truck in September and its R1S SUV later in the fall. Now, as

far as the truck, they’ve had a couple of delays as it was announced originally for

June, then pushed back to July and now it’s looking like September so we’ll see if that

actually happens. The latest delay was reported to be pandemic-related with that involving

issues slowing down their facility construction, equipment installation, and vehicle component

supply, semiconductors in particular, and now we’ll have to see if that’s all been

resolved and if that September target holds. The good thing for Rivian is if they do start

deliveries in September, then they would beat Tesla to market as the Cybertruck was originally

slated for a 2021 release, but that has been delayed until sometime in 2022.

As far as some longer-range plans, the company is looking to finalize a second plant and

they seem to be focused on eventually delivering smaller models of its R1T and R1S for the

Chinese and European markets. Now as far as looking towards an IPO. It was

reported by Bloomberg that the company has brought on advisers including Goldman Sachs

and JPMorgan to help prepare for a Rivian IPO. As far as valuations go, the company

was worth over $27 billion as of a January fundraising round. But as to what the company

could be valued at for its IPO, if the rumors are true, it looks like the company could

be targeting a $70 billion valuation. Some rumors claim the IPO could happen as early

as next month to coincide with their first deliveries, but that might be a little optimistic

as far as a timeline. But we shall see. Anyway, so there’s a list of big, huge mainstream

upcoming IPOs…Instacart, Stripe and Rivian. Let us know in the comments which one you’re

most interested in. As for me, valuations aside, I think Stripe is probably the no-brainer

top choice, but I’m really most intrigued with Rivian as you might’ve been able to

tell as I was talking. Alright, so if you’ve hung in here this

long, I wanted to let you know why it’s been a couple of months since you last heard

from me and what that means going forward. Well I guess the main thing is that, I had

a lot going on and it was really getting hard to stay consistent with the videos when I

had other work-related things I had to do, and honestly was starting to feel a little

run down. For over a year, I had been putting out 2 to 3 videos a week, very consistently,

but I was able to do a lot of that while I was able to be at home more with everything

closed down. So of course, things are opening up and that was one part of it. The second

thing was that I was having some computer issues which took a lot of my time fixing

which I did, but I spent a lot more time doing that than I figured…but what are you going

to do? Now the third reason, was actually a good reason, as I had planned a little get

away…and I did get to do that. And while on vacation, I got engaged. Which was just

awesome….I can’t tell you how happy I am to take the next step with her; she’s

just the perfect person for me. Anyway, so that’s some of the things that came up.

But the crazy thing is that once I stepped away from the channel…and I did, like completely.

I didn’t check comments or even login, because I knew if I did, I would spend hours replying

to comments because you guys know I try my best to always do that, because I really do

enjoy the interaction, and I feel like I personally know a lot of you. But at the time, I figured

I’d skip a week or so and then be back and so I didn’t even put up a post, because

I figured no one but me would really have noticed I was even gone. But again, the crazy

thing is after even just after a couple of weeks away from YouTube, I felt like I wasn’t

sure how to get back into it. Like even though I did over 120-30 videos last year, I felt,

like. so rusty, and I wasn’t sure how to get back into it. I mean, I never thought

I wouldn’t get to doing a comprehensive Robinhood IPO video, but I didn’t; I was

just so burned out. And I even started to think, ‘is this something I can even keep

doing?’ Well, the thing is I came to an answer for myself and I’m back here today

because I really enjoy this channel and everyone in the community…in fact, I’m super proud

of it. And I say that for 2 reasons: one is that I have been humbled by having all of

you out there that have watched my videos, subscribed to the channel and interacted with

me in the comments. I can’t tell you how much I’ve learned from you guys, and I hope

that’s been a two-way street…and I think it has been, because I’ve gotten so much

positive feedback which has really validated what I wanted to do here. The second reason

I’m so proud of this channel is because, probably…or even definitely…at the detriment

of getting more views and subscribers, I’ve stayed pretty true to who I am…I’ve not

hyped anything, I don’t tell you what you should do or not do, I just share the information

I have with you, throw in some of my own thoughts and hope you find value in it. And so, no,

I’m not giving up on this channel. Now going forward, I don’t think I’ll go 2 months

again before you hear from me, but I’m not going to put pressure on myself to put out

a set number of videos per week; it might vary based on whatever else I have going on

in life... And I'm sure you guys can relate to that. And, as a heads up, I’m probably

going to mix it up a little with some different types of videos; which all the Youtube gurus

say you shouldn’t do…they stay stick with your niche, or niche, but again, at the end

of the day, I want this channel to be about me and you and what we want to talk about,

not driven by the YouTube algorithm. Although, I will say I still would appreciate new subscribers

and likes... And really appreciate you guys sharing the video links to your social media

sites to help me grow But back to my main point, honestly, I get bored doing the same

things over and over, and while I’ll always have investing videos because I do enjoy that

and I know a lot of you are here because of these types of videos…I’m going to try

some different things and hopefully some of those things you’ll enjoy and learn from,

too. And I think, it’ll help me to stay a little fresher and not feel so much pressure

to cover every IPO that comes out, when I know a lot of them are companies that neither

you or I are much interested in. So anyway, just wanted to thank all of you

again. You guys are awesome. Hope you’re having a great summer and I look forward to

talking to you soon. Definitely sooner than later. Take care.