One of my favourite companies on the TSX, Docebo (TSX:DCBO)(NASDAQ:DCBO) has been a very rewarding position for investors, this year. Its stock has seen a gain of nearly 300% since the start of the year. Recent developments now have investors asking whether another big run up can be expected in the company.
What happened with Docebo?
On December 1, the company announced its IPO in the United States, planning to list on the NASDAQ. In a year filled with skyrocketing tech IPOs, south of the border, investors are anticipating similar results for this company. To recap some of the most exciting IPOs in recent months, companies such as Snowflake, Unity, and Palantir have seen incredible growth since coming public.
In a more relatable sense, fellow Canadian-listed company Lightspeed made its United States public market debut earlier this year. On September 11, Lightspeed began trading on the New York Stock Exchange. Its price at the time of market open was $30.25. At the time of this writing, Lightspeed stock trades around $58. That is nearly a double in value!
With recent IPOs proving so successful for tech companies this year, it is only natural for Docebo shareholders to wonder if a similar fate is destined for the company. As of this writing, Docebo stock has traded flat since its American IPO. Unfortunately, retail investors will not be able to see which institutions have bought into Docebo until the end of the quarter. However, a large increase in share price may indicate heavy institutional buying, as the stock becomes more accessible to fund managers.
Docebo’s outlook moving forward
The company remains one of the most promising companies in Canada. It offers an e-learning platform to enterprises. Using its AI-powered platform, training managers are more easily able to administer, monitor, and modify employee training programs. Docebo has been able to attract large customers such as Hubspot, Uber, and Walmart. It has also been able to secure partnerships with Salesforce and Amazon, which speaks volumes of its quality.
Docebo will now go head to head against its American competitors. The most prominent company that Docebo will need to stay ahead of is Cornerstone OnDemand. With a market cap of $2.89 billion, the company is currently nearly twice the size of Docebo. However, with the strong names listed as Docebo customers, and the previously mentioned partnerships, I am confident that Docebo will continue to grow within its industry.
Docebo has been an incredible growth story since its IPO. With the continued digitization of enterprise processes, and the acceleration of adoption caused by the COVID pandemic, Docebo has been thrust into the spotlight this year.
The company recently began trading in the United States via an IPO on the Nasdaq Exchange. Investors have seen tech companies rewarded greatly, via IPOs. This has led shareholders to wonder whether Docebo will see a large run up in the near future. One catalyst may be heavy institutional buying, now that Docebo stock is more accessible to American fund managers.
Regardless of what happens in the short term, the company remains poised for growth in the coming years.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Docebo Inc. David Gardner owns shares of Amazon. Tom Gardner owns shares of Salesforce.com. The Motley Fool owns shares of and recommends Amazon, HubSpot, Salesforce.com, and Snowflake Inc. The Motley Fool owns shares of Lightspeed POS Inc and Palantir Technologies Inc. The Motley Fool recommends Uber Technologies and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon.