Contributor, Benzinga
September 3, 2021
$2.16
-0.04[-1.82%]
Last update: 4:25PM (Delayed 15-Minutes)
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Open2.200Close2.150
Vol / Avg.161.292K / 179.895KMkt Cap109.609M
Day Range2.020 - 2.32852 Wk Range0.630 - 2.370

Thanks to the explosive growth of connectivity-based technologies, no shortage of communication platforms exists today. Trying to make sense of all the options available is an overwhelming task. This is the beauty of Zenvia, a company that simplifies the customer communication experience through integrating various channels and interfaces.

Zenvia translates innovations into practical terms. Here’s how you can get involved with this groundbreaking opportunity.

Zenvia Financial History

As with many tech firms, Zenvia features impressive growth, which has many investors intrigued about the upside potential for ZENV stock.

Back in 2018, the company generated 276.4 million Brazilian real. One year later, it posted 354 million, an increase of 28%. 

In 2020, Zenvia rang up 429.7 million real (the equivalent of $82.3 million USD using today’s exchange rate). That was good for a year-over-year gain of more than 21%, demonstrating the company’s resilience against a once-in-a-century pandemic.

However, Zenvia wasn’t completely immune from the COVID-19 disaster. In 2018 and 2019, the tech firm posted a profit of 19.9 million and 13.8 million real, respectively. But last year, the company suffered a loss of 21.4 million real on its books.

Nevertheless, you should keep in mind the global context. In the middle of 2020, COVID-19 hit Brazil hard with the country seeing the number of infections rise to make it the second-most affected country in the world. Compounding matters was the lack of robust health infrastructures and decisive governmental leadership. In that respect, Zenvia managed the crisis well.

Zenvia Potential

Although the bigger picture for Zenvia is quite bullish, the company is also pursuing its IPO at a delicate time. On the optimistic front, ZENV stock is likely to benefit from an IPO pop, the phenomenon where a much-hyped offering drives higher thanks to strong public sentiment. This benefits those who bought shares at their initial offering price.

But it’s not just hype that will push ZENV northward. As management stated on its Form F-1 filing with the SEC, in order for businesses to stay competitive, it must develop “software development capabilities to allow them to build applications that address end-consumers’ needs.”

And that’s exactly where Zenvia earns its reputation. It’s a multivariate platform that allows its corporate clients to meet customers where they are, irrespective of their device of choice.

However, the technology-centric Nasdaq index printed red ink over recent sessions, drawing concerns that investors may be losing confidence in the high-flying sector. If so, the rise of ZENV may turn out to be short lived.

How to Buy Zenvia (ZENV) Stock

For traditional IPOs, you have 2 ways to participate. If you are a well-heeled investor with a reputation for wagering on startup enterprises, an underwriter may give you the tap on the shoulder. In exchange for your capital, the underwriter will reward you with discounted shares relative to what they should fetch in the open market.

But if you’re like everyone else, you usually must wait for the soon-to-be-public stock to make its market debut. This means you will be on the business end of an IPO pop. Still, you benefit from the power of discretion because unlike the pre-IPO investor, you don’t have to participate in every startup venture to maintain your place in line.

Buying shares on IPO day is easy. If you know how to buy stocks, you’ll find the process straightforward. If not, you can follow the steps below.

Step 1: Pick a brokerage.

Before the modern era of connectivity, picking a brokerage was a big deal, mainly because of the wide variances in costs and fees. Eventually, though, the advent of mobile investment apps forced the brokerage industry into a paradigm shift. With everyone else offering powerful incentives such as commission-free trading, the vanguards had to adapt or risk fading away.

For the public retail investor, this development is nothing but great news. Now, you can focus on what suits your needs and ambitions. For instance, if you work a hectic schedule, you may find that a trading app does everything you could ask for. 

If you want to progress in your investing craft, you should elect a full-service platform.

Below is a list of best brokers to consider.

Step 2: Decide how many shares you want.

While seemingly a mundane decision, your share count determines your risk-reward profile for a particular position. Obviously, the more shares you own, the more you will accrue profitability if the equity unit rises in value. The opposite also is true. Only place big wagers on your highest-conviction ideas.

No matter what you decide, you should formulate your share count before you trade. The last thing you want is to let emotions dictate your actions.

Step 3: Choose your order type.

Before you pull the trigger on your trade, be sure to understand the various market orders at your disposal.

  • Bid: The bid is the highest price a buyer will offer. It is always lower than the ask.
  • Ask: The ask is the minimum price that a seller will accept. It is always higher than the bid.
  • Spread: Also known as the bid-ask spread, this is the difference between these two prices. The spread is critical to trading analysis because it indicates a market’s liquidity and risk. Narrower spreads indicate higher liquidity levels and lower risk because you can almost always find a buyer for your shares. Wider spreads signal lower liquidity and higher risk because of the lack of buyer availability.
  • Limit order: You can choose a limit order to buy stock at a specific price. But be aware that there’s no guarantee the stock will reach said price, which can leave your limit order unfulfilled.
  • Market order: To buy shares at the going rate, you place a market order, which executes at the next available price. Know that the terms are least favorable to you, with buy orders fulfilling at the ask and sell orders on the bid.
  • Stop-loss order: A stop loss is a protective order that automatically exits you out of your holdings at either a predetermined price or, in the case of a gap-down session where the price opens much lower than the prior day’s close, the next available price.
  • Stop-limit order: Stop limits only fulfill at a predetermined price, which helps prevent the negative surprise of a gap-down session. But if the price keeps dropping after a gap down, you would have been better off placing a stop loss.

Step 4: Execute your trade. 

To execute a market order, take these steps:

  1. Select action type (buy or sell).
  2. Enter the shares you want to acquire (or sell).
  3. Hit the buy (or sell) button.

Follow the same process above for limit orders. The exception is that you must enter your desired execution price.

A Relevant Idea at an Interesting Time

Thanks to its consolidation and simplification of digital communication protocols, Zenvia helps bring a human interface for its clients’ marketing and customer-service initiatives. 

Booming growth indicates that the company is doing many things right, but the IPO timing creates an interesting challenge as many tech firms find themselves staring at red ink.