Key insights
- The analysis suggests recent IPOs like Netskope (NTSK) and Chime (CHYM) may offer value after significant pullbacks. Netskope, despite growth concerns, shows strong revenue and FCF generation, trading at a discount. Chime, already GAAP profitable with revenue growth, is diversifying its monetization strategy beyond interchange fees. Both present potential buying opportunities if their underlying business fundamentals are recognized over market sentiment.
Hello everyone - wondering if anyone has been looking at recent ipo’s where stocks have pulled back considerably, putting them into value zone.
I was looking at CHYM and Netskope and both seem to be good business with fair valuation at the current stock price. Anyone tracking either of these , would be good to exchange insights?
NTSK (Netskope): At your entry reference of $9.64, Netskope is roughly 63% below its September 2025 IPO price of $26. The market is pricing in concerns about slowing ARR growth and intense SASE competition, despite revenue still growing ~28%, ARR approaching $850M, a large net-cash balance sheet, and positive FCF generation. The buy case is that investors are treating Netskope like a slowing security vendor when it is still growing faster than most public cybersecurity peers and trading at a discounted revenue multiple.
CHYM (Chime): Chime trades roughly 30–35% below its June 2025 IPO price of $27 (based on the recent ~$18 trading range used in the analysis). Unlike many fintech IPOs, Chime has already reached GAAP profitability, is growing revenue around 25%, and authorized a $200M buyback. The buy case is that the market still views Chime as a consumer fintech dependent on interchange revenue, while management is beginning to monetize a 10M+ customer base through lending, investing, and premium services. If profitability continues improving, the current valuation (~3x sales) looks low relative to the growth profile.