MSP - Could This IPO Be the Next Shopify?
Investors have seen time and again how some platforms can turn small businesses into big profits. Shopify (NYSE: SHOP) was a pioneer in helping small businesses establish themselves online, and its stock has soared more than 3,000% over the last five years. Square (NYSE: SQ) cut its teeth by empowering small business with payment systems and services. Now meet Datto (NYSE: MSP) , which went public on Oct. 21 with a mission to bring big IT solutions to small and medium businesses (SMBs). Unlike many recent IPOs, the company just turned profitable . Here are three key indicators that could give investors confidence that Datto's story and stock has a bright future.
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Datto's ticker, MSP, is an homage to its unique strategy. SMBs often can't manage their own information technology needs. Imagine you own a local chain of bakeries, or a dentistry practice. You want to access and protect your and your customers' data easily, but you didn't acquire networking and cybersecurity skills at culinary or dental school. Additionally, your business may not be big enough to invest in your own IT department, with multiple contracts from multiple vendors.
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Could This IPO Be the Next Shopify?