Offerings that could have earned you more than $10,000 from 2010
Most stocks we see on the market that could have made returns of over ten-fold come from the dot-com era. As such, some people are in the notion that the golden age for Initial Public Offerings is behind us. However, the stock exchange has proved these sentiments wrong. Over time, the companies discussed below have been able to increase their revenue and clientele so as to increase their returns. Further, these firms have consistently posted higher revenues year-over-year as a result of their expansion, innovation, and diversification. For the case of this analysis, it is assumed that an individual would invest 1000 in the firm in the year 2010 – right after the US financial crisis. Buying these company’s stocks would lead to earnings of over 10000 in 2017. Through these examples, you should be able to note other upcoming businesses and be able to invest in them right from the beginning; during their issuance.
- Tesla Inc.
Tesla is a company under the automobile industry. It manufactures electric cars and has over 30,000 employees for the production and distribution of the business’s products. Apart from automobiles, the firm also produces solar panels and serves as an energy storage company. It is based in Palo Alto, California and was co-founded by Elon Musk, JB Straubel and Ian Wright in 2003. The firm produced the first electric sports car, the Tesla Roadster, in 2008. During its offering, it sold units of its stock at 17 a share. The issuance was able to gather it $226 million, which it used for further research and expansion. Since then, Tesla has been able to set up facilities in Australia, Asia, Canada and Europe. It has also been able to partner with corporations such as Panasonic for the production of its cells. Other companies the sustainable energy firm has partnered with include Toyota, Airbnb and Daimler AG. As of April, Tesla’s stock is valued at $302.54. This means an investment of $1000 in 2010 would have your shares estimated at $17,796 now.
- Domino’s Pizza
Dominos is an increasingly popular restaurant chain specializing in the making of its unique pizza. It went public in 2004 and managed to raise an estimated $75 million. Fast forward to 2010, when the company was facing public criticism as a result of their apparently low quality pizzas. At the time, the firm’s stock was trading under $9 a share. However, in a stunning turn of events, newly-instated CEO Patrick Doyle began the steady improvement of the company’s operations. Under his management, the business revised its pizza recipe and started a set of candid advertisements where the firm accepted that their pizzas were not as tasty as their competitors’. However, they emphasized the improvements they had made in their new marketing strategy. The turn-around brought up a set of new investments and increased demand for their pizzas. By 2016, Dominos was located in 82 countries. It employs an estimated 265,000 people for its operations. As of April 10th, Dominos stock is selling at $175.16. An investor who noted the shift after the IPO in 2010 and invested $1000 in company shares at the time would be have their shares valued at $19,680 now. This firm’s returns on investments are even higher than Google’s since its IPO.