I'd be curious to hear opinions on Wealthfront's recent IPO -- ticker WLTH.
Not that it matters much, but my own background: The majority of my portfolio is pretty bog standard broad ETFs -- yes, the lion's share in a 401k with pretty boring allocations via your standard mix of blocks.
I have a taxable investment account with Wealthfront *and* an individual account I use for individual equities. Why both? Well, I hit a jackpot in my individual account (bought into NVDA in 2020) and also had some other success stories... and ironically? I always told myself "If you can't beat the robots, you're just spending money on a hobby". 5+ years later - I'm still winning.
So... that brings me to the individual stock in question. I'm a long-term, buy-and-hold guy. I **prefer** to invest in equities where I have some experience/knowledge of the underlying company.
I bought into TOST at its trough a bit ago (\~17) on the same front - profitable, but IPO out of the gate at \~70. However, my brother is a restauranteur and through him, I've talked with plenty of others - and I felt it was really best-in-class, like their growth, and while not a huge win like NVDA? It's certainly paid off - and I continue to like it under \~35.
And... I've used Wealthfront - it's my primary HYSA nowadays (though not my only one, but my largest) and as noted, also have a taxable "robo-ETF" account with them. I've been a customer for nearly 7 years now -- and I *do* give them high marks. I really like the platform. I really like the ingenuity. As much as I don't avail myself? I also like them dipping into further fintech area.
My baseline thoughts -
On the plus side:
\- Fairly rare for an IPO to already be profitable. They are
\- The P/E looks fine - \~15.
\- Still showing growth
\- Expanding offerings
On the pause/minus side:
\- HIGHLY competitive space - when I chose Wealthfront? Nearly a coinflip between them and Betterment. Robinhood, a bazillion others -- HIGHLY competitive
\- Growth is tailing off - still growing, but no longer a multiplier.
\- Never had good luck with financials
I don't believe in trying to "time" buys -- and as with nearly every IPO, they're bleeding off a bit. But... I like the company.
Part of me wants to wait a few quarters and compare some 10-Qs... the other part says I like the company, like the financials, etc.
Would love to hear other thoughts....