A parade of tech companies has stepped onto public markets in the past year, and their stocks have taken off. The latest example is Slack Technologies Inc. (WORK, Financial), the popular app for chatting at your job, which opened 48.5% above its reference price of $26 per share in its direct listing Thursday.
Many long-term, fundamentals-focused investors tend to avoid IPOs of hyped companies due to their underlying financials. Slack has forecast a net loss of 19 cents to 20 cents for its second quarter ending on July 31, and a decline in revenue growth to 52%, compared to 67% in the first quarter. Beyond Meat (BYND, Financial), the plant-based meat alternative company up 157% since its May debut, had a first-quarter net loss of $6.6 million despite 215% net revenue growth. Revenue for The Beyond Burger maker is also expected to cool to above 140% for the full-year 2019, from 170% in 2018.
Of the many public offerings over the past year, a handful have drawn the interest of some investors GuruFocus tracks. According to the All-in-One Screener search of 178 investors, the IPOs the most are hold are: Elanco Animal Health Inc. (ELAN, Financial), Tencent Music Entertainent Group (TME, Financial), Lyft Inc. (LYFT, Financial), Eventbrite Inc. (EB, Financial) and Dell Technologies Inc. (DELL, Financial).
Elanco Animal Health Inc. (ELAN, Financial)
With nine GuruFocus-tracked investors holding shares, Elanco Animal Health was the most popular IPO. The Greenfield, Indiana-based company provides products and knowledge services aimed to protect animal health. It went public on Sept. 20 at a price of $24 per share after separating from Eli Lilly Co. (LLY). The stock closed at $32.93 Thursday, for a gain around 37%.
For the first quarter, the company produced $731.1 million in revenue, down 1% year-over-year. Net income was $13.3 million, or 9 cents per diluted share, a decline from $72.7 million, or 25 cents per diluted share.
Primecap Management has the largest share, with an 8.37% stake after increasing it 516.8% in the first quarter. David Carlson (Trades, Portfolio), Mairs and Power (Trades, Portfolio), and Signature Select Canadian Fund (Trades, Portfolio) all started positions during the quarter.
Tencent Music Entertainent Group (TME, Financial)
Eight investors tracked by GuruFocus have holdings of Tencent Music Entertainment Group.
The online music streaming company based in China went public in December 2018 at $13 per American Depositary Receipt. The stock traded Friday afternoon around $14.88, gaining about 14.5% since its IPO.
For the first quarter, Tencent Music Entertainment Group reported a 39.4% increase in revenue to $855 million. Net profit increased 17.4% to $147 million.
Tech investors and Tiger Cubs Chase Coleman (Trades, Portfolio) and Philippe Laffont (Trades, Portfolio) have the largest positions. Coleman owns 0.32% of shares, and Philippe has 0.15%. Value Partners (Trades, Portfolio), Matthews China Fund (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) each started positions in the first quarter.
Eight investors GuruFocus covers also hold shares of Lyft Inc. (LYFT, Financial).
The ridesharing company that competes with Uber (UBER, Financial) went public at $72 per share in March. The stock traded Friday around $64.04, falling 11%.
Lyft’s first-quarter revenue increased 95% from the previous year to $776.0 million. Its net loss totaled $1.14 billion, versus $234.34 million a year earlier.
The biggest investors in Lyft that are tracked by GuruFocus are Primecap Management with 0.20% of shares and Steven Cohen (Trades, Portfolio) with 0.16%.
Eventbrite Inc. (EB, Financial)
GuruFocus cover six investors who have stakes in Eventbrite Inc.
Eventbrite, an online ticketing company, priced its IPO at $23 per share. After initially soaring to the high $30s, they settled to around $16.32 Friday afternoon, losing 29%.
For the first quarter, the company reported $81.3 million in revenue, an increase of 9.1% from the previous year. It also made a net loss of $9.998 million, or 13 cents per diluted share. It did not report net earnings for the first quarter of 2018.
Chase Coleman (Trades, Portfolio) of Tiger Global Management had the largest position of investors GuruFocus covers, with 17.44% of outstanding shares. Jeremy Grantham (Trades, Portfolio) has the next largest holding with 1.33%.
Dell Technologies Inc. (DELL, Financial)
Six GuruFocus investors have positions in Dell Technologies Inc.
Dell, the computer maker, returned to the stock market on Dec. 28, priced at $46 per share. With the price around $53.99 Friday, it has gained 17.4%.
For its first quarter ended May 3, Dell’s revenue reached $21.9 billion, up 3% from the previous year. Net income grew to $329 million from a net loss of $538 million in the same quarter a year earlier.
The largest position of an investor GuruFocus tracks belongs to Dodge & Cox, with 2.01% of shares outstanding. Paul singer, the next largest investor, had 1.56% of shares at quarter-end.
See more IPOs investors tracked by GuruFocus favor using the screen here.
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