The ‘millennial’ stocks to watch as Oatly and Bumble IPOs take the market by storm

0
12

Oatly is planning a US listing that could value it at US$10bn, while Bumble Inc. (NASDAQ:BMBL) closed its first day of trading up 64% after completing a US$2.1bn IPO.

A Swedish oat milk producer and an American dating app may not have much in common, except huge popularity among younger consumers worldwide.

READ: Swedish oat milk brand Oatly to float on US market with US$10bn valuation

They are both disruptors in their respective industries, becoming household names for Millennials and Gen Z.

Established by Whitney Wolfe Herd, who co-founded competitor Tinder nine years ago, Bumble stands out from competitors because it requires women to make the first move.

Although it was established in 1994, Oatly has been riding the sustainability trend since Toni Petersson joined as a chief executive in 2012, pitching itself as a more eco-friendly and healthier alternative to cow’s milk.

Plant-based substitutes for meat have become hugely popular, with companies such as faux burger producer Beyond Meat Inc (NASDAQ:BYND) and protein maker Burcon NutraScience (TSE:BU) rocketing over the past year as consumers become increasingly aware of their carbon footprint.

Remaining in the food space, home delivery services such as DoorDash Inc (NYSE:DASH), Uber Eats, Just Eat Takeaway.com and GrubHub have seen demand rocketing, with Deliveroo standing out as one of the most hotly anticipated IPOs this year.

The markets are also getting hyped up about grocery pickup service Instacart, videogame platform Roblox and hyperlocal social network Nextdoor, all expected to debut over the next few months.

Online card retailer Moonpig (LON:MOON) was one of the biggest names to drop earlier this month, same as bootmaker Dr Martens (LON:DOCS), which has managed to become a legendary brand even among the younger fashion lovers.

Sticking to the sector, even boomers are well-accustomed to online retailers boohoo Group PLC (LON:BOO) and ASOS PLC (LON:ASC) after they swept up historical high street powerhouses Debenhams and Arcadia.

The two AIM-listed competitors have both been targeting customers under the age of 30, although boohoo is expected to diversify its demographics now that it owns Arcadia’s Burton, Dorothy Perkins and Wallis brands.

Meanwhile, London-based Farfetch (NYSE:FTCH) turned around during the pandemic with a US$1.1bn investment, strengthening its position in the luxury market, while second-hand selling space Poshmark (NASDAQ:POSH) was valued at US$7bn in its January IPO.

Just a few months before, skincare and protein seller The Hut Group (LON:THG) was the largest flotation in the UK since 2015 as it was valued at £5.4bn after raising £1.8bn in the first public issue.

Online shoppers can rely on fintech unicorn Klarna, a buy now, pay later service that allows to spread payments over up to two months.

With stunning aesthetics and the promise to make dream items more accessible, Klarna has become popular – and arguably problematic – among cash-strapped millennials, perhaps as a more appealing alternative to traditional lending.

High street banks have also been replaced by online-only, customer-focused challengers such as Monzo, Revolut and PayPal’s Venmo.

Elsewhere, mental health apps such as Headspace and Mind have been at the forefront of the demand for digital wellbeing services during the pandemic, while Alphabet Inc’s (NASDAQ:GOOG) Oscar Health, a health insurance startup, is targeting a US$1bn IPO.

The COVID-19 pandemic has accelerated appetite for sustainable, digital-led products and companies, which are expected to dominate the market over the years to come.

LEAVE A REPLY

Please enter your comment!
Please enter your name here