On October 18, 2023 we published an update on three of the hottest IPOs for 2023. Chip design firm Arm Holdings (ARM), grocery delivery service Instacart (CART) and the classic sandal maker Birkenstock (BIRK) were the companies that mad a huge splash after a months-long IPO drought.
All three of these stocks came out of the gate seeking what they believed was fair valuation. In each case, the stock price plummeted coming out of the gate.
How have they performed since their initial drop? Let’s take a closer look.
Arm Holdings (ARM)
ARM Holdings entered the hot chip and semiconductor market on September 14, 2023 priced at $56 dollars per share. It ran up to $69 within one day before it came crashing down to a low of $49.87.
Last Report – October 18, 2023
ARM fell from a high of $69 down to a tight range between $50 and $56. Stochastics were oversold, suggesting a potential price reversal back to the upside
Updated Report November 9, 2023
After a brief period breaking below the $50 price level, ARM is currently traveling near the upper boundary of its historical price range. Will price breakout to the upside, or will the $56 price level hold up as resistance? That remains to be seen, but the stochastic oscillator shows ARM being extremely overbought, signalling that a pullback in price may be imminent.
Instacart (CART)
The popular grocery delivery company that flourished during the height of the pandemic launched its IPO September 19, 2023 five days after ARM. The stock hit the market priced at $42 and plummeted down to a low of $24.50. It then settled into a price range between 24.50 and $27.
Last Report – October 18, 2023
Updated Report November 9, 2023
CART just broke through the upper end of the $24.50-$27 price range, and is currently trading at $27.24 going into earnings. Will it start to grind its way up, or will it pullback to its historical price range? The earnings report could weigh heavily into the short-term direction of CART. Stochastics are nearing overbought territory, so keep an eye on a potential short-term price pullback.
Birkenstock (BIRK)
On October 11, 2023 German sandal maker Birkenstock (BIRK) launched its IPO.
Last Report – October 18, 2023
Just like ARM and CART, BIRK debuted on Wall St. priced at $42 dollars per share, before quickly pulling back to $36 dollars.
After a three-day freefall, BIRK rallied back for 2 days, closing at $39.28 on October 17.
Updated Report November 9, 2023
Since our last report on October 18, BIRK has risen nearly 15% in price from $36.78 to $42.21. BIRK is now trading above its IPO prce of $41.
Conclusion
ARM, CART and BIRK all had rocky debuts on the Fall of 2023, but all three of them appear to have established a floor in pricing and have been grinding their way upward.
Of these three new IPOs, Birkenstock has shown the best performance to date.
We will re-visit these IPOs one full year after their debuts.
