{"id":117047,"date":"2021-03-16T13:38:20","date_gmt":"2021-03-16T13:38:20","guid":{"rendered":"https:\/\/precoinnews.com\/?p=117047"},"modified":"2021-03-16T13:38:20","modified_gmt":"2021-03-16T13:38:20","slug":"bumble-and-roblox-soar-but-trader-says-this-9-month-old-stock-looks-like-a-better-buy","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/bumble-and-roblox-soar-but-trader-says-this-9-month-old-stock-looks-like-a-better-buy\/","title":{"rendered":"Bumble and Roblox soar, but trader says this 9-month-old stock looks like a better buy"},"content":{"rendered":"
Whether by IPO or direct listing, companies making their public debut this year have been on fire.<\/p>\n
Some of those hot names include Roblox, Bumble and South Korean e-commerce company Coupang, all of which have soared since they went public in the past few weeks. Gaming platform Roblox, for example, is up 60% from last week's direct listing.<\/p>\n
Mark Tepper, president of Strategic Wealth Partners, is steering clear of these newer stocks until they've proven their worth.<\/p>\n
"Unless you're getting it at the IPO price, which isn't the case for almost all retail investors, I kind of think it makes more sense to take a wait-and-see approach. My general rule here is to avoid these companies for at least the first six months or so, kind of let the dust settle," Tepper told CNBC's "Trading Nation" on Monday.<\/p>\n
There are some "diamonds in the rough," though, he said \u2013 Tepper prefers a stock like Vroom to a Roblox or Bumble, a name he said meets his growth-at-a-reasonable price philosophy.<\/p>\n
"I do think that Vroom is priced pretty reasonably. It's the No. 2, pure-play e-commerce auto play behind Carvana but it trades at an 80% discount with faster growth," he said.<\/p>\n
Tepper added that Vroom is also overcoming early inventory issues that depressed the stock early in its run. The company went public in June 2020. Since a September peak, it has fallen 50%.<\/p>\n
While Bumble and Roblox may have risen post-debut, the rest of the IPO and direct listing market looks to have cooled off, according to Oppenheimer's head of technical analysis, Ari Wald.<\/p>\n
"What was a very red-hot IPO market really is much less so. It's not as red hot as it was, I think, as represented by this Renaissance IPO ETF. [It] was down 25% from its peak into its recent low and it's still off 14% from its high," Wald said during the same interview.<\/p>\n