Switch Keeps Recent IPO Market Momentum Going

Switch Inc. (NYSE: SWCH) is the latest high-profile IPO to be a huge success on Wall Street, surging 44 percent on its first day of trading Friday morning.

Switch's debut comes just a day after Rhythm Pharmaceuticals, Inc. (NASDAQ: RYTM) spiked 76.4 percent on its first day on the market. Unfortunately, as Rhythm's 9-percent Friday decline illustrates, a good first day on the market doesn’t necessarily guarantee the stock can maintain that momentum moving forward.

Several popular 2017 IPOs have hit the ground running with a huge first day only to be halted in their tracks.

Here’s a look at 11 of the most highly visible 2017 IPO stocks, how they performed on their first day of trading and how they have performed overall year to date.

The Numbers

1. Snap Inc (NYSE: SNAP)

• IPO Date: March 1, 2017.

• First-Day Return: +44.0 percent.

• Year-to-Date Return: -14.8 percent.

2. J.Jill Inc (NYSE: JILL)

• IPO Date: March 8, 2017.

• First-Day Return: -2.7 percent.

• Year-to-Date Return: -18.6 percent.

3. Canada Goose Holdings Inc. Subordinate Voting Shares (NYSE: GOOS)

• IPO Date: March 15, 2017.

• First-Day Return: +27.3 percent.

• Year-to-Date Return: +62.7 percent.

4. Okta Inc (NASDAQ: OKTA)

• IPO Date: April 6, 2017.

• First-Day Return: +38.3 percent.

• Year-to-Date Return: +63.2 percent.

5. Veritone Inc (NASDAQ: VERI)

• IPO Date: May 11, 2017.

• First-Day Return: -12.9 percent.

• Year-to-Date Return: +164.6 percent.

6. WideOpenWest Inc (NYSE: WOW)

• IPO Date: May 24, 2017.

• First-Day Return: -2.9 percent.

• Year-to-Date Return: -10.7 percent.

7. Altice USA Inc (NYSE: ATUS)

• IPO Date: June 21, 2017.

• First-Day Return: +9.0 percent.

• Year-to-Date Return: -5.9 percent.

8. Blue Apron Holdings Inc (NYSE: APRN)

• IPO Date: June 28, 2017.

• First-Day Return: +0.0 percent.

• Year-to-Date Return: -46.8 percent.

9.Redfin Corp (NASDAQ: RDFN)

• IPO Date: July 27, 2017.

• First-Day Return: +44.7 percent.

• Year-to-Date Return: +66.7 percent.

10. Yogaworks Inc (NASDAQ: YOGA)

• IPO Date: August 10, 2017.

• First-Day Return: -11.8 percent.

• Year-to-Date Return: -52.0 percent.

11. Roku Inc (NASDAQ: ROKU)

• IPO Date: September 27, 2017.

• First-Day Return: +67.9 percent.

• Year-to-Date Return: +57.2 percent.

Related Link: Roku IPO Watch: Things To Know

IPO Trends

Overall, this batch of 2017 IPOs has been a success, with the average stock trading higher by 18.2 percent on its first day of trading. Despite longer-term duds like Snap and Blue Apron, the overall group has added to their first-day gains, averaging a 24.1 percent gain year to date.

Of course, it’s important for the typical retail investor to understand that these returns are based on IPO prices, which are typically only available to institutional investors and special high-net-worth clients. Buying all 11 of these companies on the open market on their first day of trading would have resulted in year-to-date losses in seven out of the 11 stocks.

IPOs can be huge winners under the right circumstances, but their unpredictability and volatility make them risky plays overall. IPO investors can only hope to rely on diversification as a reliable way to capture the studs and mitigate the duds.

Related Link: Considering High-Profile IPOs: How Do These Stocks Trade The Day After Their First Earnings Report?

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