Data is key as Informatica leads NYSE big movers just 3 months after IPO

FXOpen

Everyone likes an IPO success story.

Informatica, a Silicon Valley enterprise that develops software for businesses to manage their data via a cloud-hosted solution is a case in point.

The company, based in Redwood, California, became publicly listed on the New York Stock Exchange in October this year, and last week has been doing well, much to the appreciation of its initial shareholders.

Over the five-day moving average, Informatica shares increased by 18.34%, getting to a post-IPO high by Friday afternoon on the New York trading session of $38.52 per share.

This placed Informatica as one of the biggest movers among US companies as of close of business on Friday.

That is no mean feat, especially considering how fiercely competitive the tech stock arena is right now in a post-meme stock world, where many Silicon Valley start-ups have gone past their initial stage and are now rallying for public listings either via the conventional method as is the case for Informatica, or via SPAC listings for small, very recently established companies.

The days in which venture capital companies would invest in a start-up, then drive it hard for five years and expect to sell at a higher price to a larger company are somewhat in the past, and have given way to angel investors wanting a rapid IPO or to go onto the public market via SPAC listings in a fraction of the time taken by similar firms a few years ago.

This has led to a very volatile stock market for newly established or recently listed technology firms and is exciting for traders and investors alike.

Since its IPO just three months ago, overhaul of its business model in which it moved from a license-based business model to subscriptions, which is very much the methodology which is currently used by retail and commercial software firms which have achieved monumental success, from Microsoft, to Netflix to Spotify.

The company has invested tremendously in its services, having spent approximately $1 billion in R&D over the past five years to build its flagship Intelligence Data Management Cloud (IDCM) platform.

New releases of software that is instrumental to a recently listed tech firm's armory are often a measure of which investors take a positive view, and with data and the way it is administered being a major priority for many companies which realize its value being a key tenet these days, Informatica has led a bull market since its listing.

Informatica’s total enterprise value is $9.6bn when including its $2.4bn debt load which is very positive indeed.

Data may well be the new measure of intrinsic value for most companies, however listings of software companies on major exchanges which have innovative methods of assisting enterprises with their handling of data are certainly on the radar of shrewd investors and traders.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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