ThoughtSpot is a technology company that produces business-intelligence analytics search software that provides equitable access to big data — the only requirement is intellectual curiosity. And the ThoughtSpot initial public offering (IPO) has amassed significant investor demand.
Should an IPO materialize, the timing couldn’t be better. The terrible disruption of the pandemic means that almost all companies seek maximum revenue generation. Client corporations can immediately recognize which business ventures work and which do not with ThoughtSpot’s intelligent analytics architecture.
ThoughtSpot dramatically improves return on investment and minimizes overhead. Learn how you can buy ThoughtSpot IPO stock.
When is the ThoughtSpot IPO Date?
The ThoughtSpot IPO has no confirmed date. As management prepares for a public debut, analysts anticipate that it could arrive sometime this year.
In late 2019 and early 2020, management was already considering going public. For instance, in a 2019 funding round, ThoughtSpot raised $248 million at a $1.95 billion valuation. Such scale represented significant demand – the company could have well gone public in 2020 had the pandemic not disrupted matters.
Another factor to consider is that software IPOs have been hot commodities recently. On its launch, Snowflake (NASDAQ: SNOW) became the biggest software-based debut, selling 28 million shares for $3.4 billion. That kind of response has many thinking big about the potential upcoming ThoughtSpot IPO.
ThoughtSpot Financial History
One of the risks associated with buying an IPO is the unknown. While you can make significant money on the initial pop as the general public dives in, you never know where the market will ultimately take your target stock.
Early speculators – even those that buy not on the initial offering price but during the public market session – have a decent shot at profitability. Unlike purely speculative ventures, the financials for ThoughtSpot are very impressive.
The company’s growth rate in 2019 was much higher than rival Tableau, which Salesforce (NYSE: CRM) acquired. And in the same year, ThoughtSpot generated a revenue run rate in the $100 million territory – and one that grew 108% year-over-year!
ThoughtSpot participated in 8 funding rounds beginning in 2012. Investors have increasingly piled into the opportunity, driving up the total money raised to $743.7 million.
Notably, 2019 saw 2 founding rounds. In addition to the Aug. 22 raise of $248 million, it also accrued $200 million on Aug. 1.
ThoughtSpot Potential
The possible ThoughtSpot IPO offers significant upside for those who wish to take the wager. You just need to look at the facts.
Industry experts predict that the global AI market will generate $126 billion by 2025. Better yet, more than enough room exists for specialized players like ThoughtSpot to flourish. As the AI sector progresses, it will encompass paradigm-shifting innovations such as natural language processing, automation and robotics and machine learning.
The company can thrive based on its user-friendly profile built on 3 attributes:
- Approachability: Anyone can request and receive insightful data analytics reports that sharpens focus on productive and profitable business unit initiatives.
- Convenience: In contrast to competing AI platforms, ThoughtSpot’s intelligent architecture brings insights to you rather than the other way around.
- Modularity: ThoughtSpot clients can sign up as an SaaS format or the platform can be integrated into any private virtual cloud infrastructure.
By delivering compelling and relevant solutions throughout the entire organizational framework, ThoughtSpot has succeeded in facilitating democratization in what used to be a convoluted, rarefied industry.
How to Buy ThoughtSpot IPO Stock
The dramatic rise in valuations on Wall Street had millions of investing newcomers search out how to buy stocks. And new investors want to know: how do you invest in the ground floor?
Those who wish to participate in IPOs at the initial offering price – which is almost always lower than the opening market price – must have connections and deep pockets. The underwriters of IPOs price offerings below what the market will likely bear to attract investors to the shares.
But to participate means you must be somebody. On the flipside, the drawback is that IPO buyers must buy everything offered to them, including substandard opportunities. Otherwise, you’ll lose your connections.
Buying the ThoughtSpot IPO stock when it’s available to the general public isn’t necessarily a bad deal. If anything, you don’t have to deal with the drama associated with ground floor offerings.
Step-by-step Guide
- Pick a brokerage.
Before you can get started with the ThoughtSpot IPO, you must elect a brokerage. Brokerages connect investors (you) to the market makers that ultimately distributes the shares you wish to purchase.
Thanks to rising competition in the field, picking the best brokers comes down to preference and investing style. For instance, if you’re looking for a quick-and-easy solution to investing, a mobile trading app may be right for you. If you anticipate trading as a living, opting for a comprehensive platform is key. - Decide how many shares you want.
Market transactions are slightly different from others in that the main transactional units are in share count, not dollar amount. Once you figure out how much you wish to spend, divide this figure by the market price of the target stock to determine how many shares you can purchase.
Please note that some brokers offer the ability to acquire fractional shares. But because this is not a standardized feature, you should include it in your list of must-haves in your brokerage search. - Choose your order type.
Due to the constant fluctuating prices in the market, investors must deploy specific order types to acquire shares. In addition, important terminologies and concepts exist with which you should familiarize yourself. Below are the essentials:
• Bid: The bid refers to the maximum price a buyer is willing to pay for a stock. This is always lower than the ask.
• Ask: On the other hand, the ask is the minimum price that a seller will accept. The ask is always lower than the bid.
• Spread: The spread is the difference between the bid and ask price. Market makers earn their living on this bid-ask spread by profiting from the difference between their acquisition cost of holding the desired shares and your purchasing price (as the investor).
• Limit order: Limit orders are specific orders to execute a trade at a predetermined price. They have the advantage of fostering maximum control and transparency. However, there is no guarantee that the target stock will reach the limit order price.
• Market order: Market orders execute at the next available price. You are virtually guaranteed for your order to go through if you place a market order during normal session hours. However, the price of execution will be the least favorable to you – buy orders on the ask, sell on the bid.
• Stop-loss order: You may think of stop-loss orders as protective market orders. They automatically exit you out of your target stock holdings at either the predetermined price or the next available price, whichever comes first. The risk is that during gap-down sessions, you can exit at a much lower price than you originally anticipated.
• Stop-limit order: Similarly, stop-limit orders are limit orders in reverse. They only execute at your predetermined price. However, because no guarantee exists that the target stock will reach this price, this order type can be devastatingly risky during a market freefall. - Execute your trade.
How you wish to execute your trade comes down to your desire for equity ownership. If you must have a piece of this hotly anticipated launch, then a market order guarantees you a position. If you prefer maximum control of your transactions, a limit order is the only option.
Best Online Brokers
Not sure where to start your search for the best broker? Consider a few of our favorite options for beginning investors using the table below.
A Democratized Approach to AI
One of the biggest challenges of artificial intelligence protocols is they tend to function in silos of technical and functional exclusivity. With ThoughtSpot, AI becomes a collaborative – not competitive – platform within an organizational framework.
By opening access to data-driven insights for everyone irrespective of background, the ThoughtSpot IPO has the capacity to integrate machine learning for the masses.
About Joshua Enomoto
His distinct writing style of distilling convoluted data into relatable and compelling narratives has earned him recognition among several investment-related publications.