You can’t buy BuzzFeed stock yet because it is still a private company. But that might change in early 2018 as it is rumored that this media/tech company which is a favorite of millennials, is gearing up to have an IPO. BuzzFeed is different from “old” media companies like Yahoo, Huffington Post, and AOL in that it thrives on creating sharable viral content, much of which is news you don’t really need. In other words, BuzzFeed’s sweet spot is using modern technology to create “buzz” around entertaining stories and videos which the younger generations so love to share with one another.
Estimated to be worth approximately $1.7 billion dollars in early 2017, Buzzfeed could be the first company of its type (the others being Vox, Group Nine Media, and Vice Media) to have an IPO and that would undoubtedly excite many young investors, much like the Snap IPO did earlier this year. With 2017 and beyond looking like there will be an increase in IPO’s overall, the time seems to be right for BuzzFeed to sell stock shares to eager investors.
First, You Will Need An Online Broker Account
In order to buy BuzzFeed stock when it IPO’s, you must first have money in an online broker account. In fact, to buy any stock you need such an account and they are easy and free to open. Online stock brokers typically charge between $4.95 and $9.99 per trade which means that every time you buy or sell a stock (it doesn’t matter the number of shares), you are charged that fee.
I recommend TD Ameritrade for investors of all levels because it routinely gets great reviews and there is no minimum dollar requirement to open a new account. You can see that TD Ameritrade came in 3rd place out of 16 brokers in Barron’s 2017 ratings and it is the broker I use for the portfolio shown on the front page of this website. Having been in business for more than 40 years, TD Ameritrade is one of the better known brokers in the investment world and it is one that you can sign up to with confidence.
Should You Buy BuzzFeed Stock At The IPO Or Wait?
If BuzzFeed does decide to have an IPO in 2018, investors might be smart to not buy stock the first day and wait awhile. That is because investors often pay more than they should the first day(s) of an IPO due to the tremendous hype and demand. If you wait a week or more, you may have a chance to buy it lower than you could on opening day.
We’ve just seen this with the recent SNAP IPO: the lowest price you could have gotten on day 1 was $24 and one month later, the price is about 10% lower than that. Investors in the very popular Facebook IPO years ago faced a similar situation where the stock was still underwater almost a year later. Waiting a while and not buying right away for the highly publicized and popular IPO’s is often the best strategy.
BuzzFeed The Media/Technology Company
BuzzFeed has lots of backing (closing in on $500 million in funding) and the biggest investor is NBCUniversal. At this point, the company will likely either have an IPO or get acquired by some larger company but the signals seem to say that it would rather go public. It will most likely be an IPO with a moderate level of hype and investors will probably be interested in buying shares of BuzzFeed because it is on the cutting edge of media/Internet technology and has an audience base that is in the age brackets that advertisers love.
The key to any successful IPO is showing investors that the company has the ability to grow quickly and ramp up sales. Will BuzzFeed be able to do that and continue to grow its developing media businesses? Right now there is little information about what its actual 2016 revenue was but the company lowered its projections a year ago. For a BuzzFeed IPO to take place which will allow individual investors to buy the stock, the company will need to be able to show that its advertising revenue and sales is back on the upswing and we should learn more about that in the coming 2017 year.