Chime IPO: Is This Your Next BIG Investment?

Summary

Circle's IPO was a huge success, opening at $64 per share after a $31 pre-order, and even hitting $103. Chime Financial, a mobile-first banking platform, is also going public with its IPO set for June 12, 2025, offering shares at $24-$26. Chime, though not profitable yet, is backed by $3.3 billion in investment and projects $1.8 billion in revenue for 2025. While not expected to have the same explosive gains as Circle, Chime's IPO is still a moderate buy. Additionally, the video highlights new investment analysis tools in a Discord community to assist investors in making informed decisions.

Takeaways

• 😀 Circle Internet Group's IPO went public successfully, with an opening price of $64, quickly reaching $103, doubling the pre-order price of $31.
• 😀 The YouTuber had previously pre-ordered shares at $31, which turned out to be a great move given the high IPO performance.
• 😀 Chime Financial is the next highly anticipated IPO, but it is not on the same level as Circle due to its smaller scale and different market focus.
• 😀 Chime Financial targets Americans with annual incomes under $100,000 and operates with a mobile-first platform, already having around 8.7 million users.
• 😀 The IPO price range for Chime Financial is between $24 to $26 per share, with an expected offer of 32 million shares, and it will go public on June 12, 2025.
• 😀 Chime Financial has received $3.3 billion in investments from major institutional investors like DST Global and Crossing Capital.
• 😀 The company is projected to generate $1.8 billion in revenue for 2025, with an impressive 87-88% gross margin and improving net income.
• 😀 Chime Financial is not yet profitable but is showing positive cash flow and a low debt of just $77 million, which is favorable compared to its projected revenue.
• 😀 The company's balance sheet shows $331 million in cash, with total liabilities amounting to $454 million.
• 😀 The YouTuber gives Chime Financial a moderate buy rating, advising caution, as it is not profitable yet, unlike Circle, which was a more exciting IPO.

Q & A

What was the IPO price of Circle's shares during pre-order?

The IPO price for Circle's shares during pre-order was $31 per share.

How much did Circle's stock price increase on its first day of trading?

Circle's stock price opened at $64, and reached as high as $103, providing a significant increase from the initial pre-order price.

What is the second IPO discussed in the video?

The second IPO discussed is Chime Financial, which is a highly anticipated IPO.

Who is the target demographic for Chime Financial?

Chime Financial targets individuals with annual incomes under $100,000, providing a mobile-first platform for banking and financial services.

What is the projected revenue for Chime Financial in 2025?

Chime Financial is projected to reach $1.8 billion in revenue by 2025.

What is Chime Financial's gross margin?

Chime Financial's gross margin is between 87% and 88%, which is considered very healthy.

Is Chime Financial profitable at the moment?

Chime Financial is not yet profitable, but its financial situation is improving, with increasing net income and free cash flow.

How much total debt does Chime Financial have?

Chime Financial has a total debt of just $77 million.

What institutional investors have backed Chime Financial?

Chime Financial has received backing from prominent institutional investors, including DST Global and Crossing Capital.

What is the speaker’s opinion on investing in Chime Financial's IPO?

The speaker gives Chime Financial a 'moderate buy' rating, indicating cautious optimism but not as much excitement as Circle’s IPO.