We’re Watching These Two IPO Candidates

Sep 11, 2021

At LikeFolio, we like to stay ahead of the curve.

Way ahead.

That’s why we start watching as trends develop on Main Street — even before the companies are traded on Wall Street.

Today, I’m going to highlight two of these private companies that are showing high promise in terms of consumer adoption, and that could be on the initial public offering (IPO) track within the next six to 12 months.

Sweetgreen

Sweetgreen is a trendy fast-casual restaurant chain that specializes in quick-serve salads.

Earlier this year, the company filed for a confidential initial public offering — a type of IPO where the S-1 form required to file with the U.S. Securities and Exchange Commission does not become public until 15 days before the offering date.

Underlying Mentions show that Sweetgreen has emerged from the pandemic with positive momentum: Consumer Buzz is trending +35% QoQ and +51% YoY on a 30-day moving average.

Last week, Sweetgreen’s CEO made controversial statements on LinkedIn regarding the link between COVID-19 hospitalizations and obesity.

This publicity has contributed to the recent surge in Sweetgreen Buzz.

Still, it’s clear that Mentions of the restaurant chain were already in an uptrend, and the current overall strength bodes well for the company’s planned IPO.

However, it remains to be seen what date Sweetgreen will begin trading publicly. We’re expecting the company to have a successful IPO and be a name to watch early in that process.

Discord

One notable company rumored to be considering a public offering in 2021 is the online group chat platform Discord.

Discord initially gained popularity among the online gaming community.

However, the chat software has become far more ubiquitous in recent years, as evidenced by the current all-time high level of usage Mentions.

Consumer Mentions of using Discord for online chats, messaging, and group communication have risen +41% YoY and +174% versus 2019 (30-day moving average).

LikeFolio data reveals an influx of online gaming Mentions in 2020. Although the online gaming trend has gained +12% versus 2019 (90-day moving average), it’s showing slight YoY weakness.

Discord’s impressive growth in 2021 suggests a high degree of organic adoption by non-gaming users, a positive sign for the company.

The possibility of an IPO is only a rumor for now.

As always, LikeFolio clients will be the first to know when a significant investment opportunity arises in either of these companies, or the hundreds of other consumer-facing names we cover.

Andy Swan
Founder, LikeFolio