| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
Consumer review site Trustpilot recently joined the flurry of companies making their stock market debut on the London Stock Exchange in what’s shaping up to be a busy year for the exchange. Trustpilot Group PLC (LSE: TRST) floated with a market capitalization of £1.08 billion and raised $655 million ahead of its initial public offering (IPO).
The Trustpilot journey has been a slow-burn success story. Since its inception in 2007, Trustpilot has grown steadily over the years to become one of the largest sites for online reviews and whose mission is to improve transparency on the internet.
Meanwhile, investors looking to put their money in a company that’s now an important aspect of the online world can learn more about how to buy Trustpilot.
Trustpilot Financial History
Founded in 2007, Peter Muhlmann has transformed Trustpilot from a Danish startup to a global company — it’s now a leading global review platform in an emerging and growing category. The company seeks to provide a “trust layer” for the open commerce landscape by giving consumers the confidence to buy goods and services from a wide range of online and offline businesses worldwide.
Its chief executive officer’s vision of creating an independent currency of trust is now more than a reality as consumers continue to actively look for ways to get the assurance that any businesses they engage with are trustworthy.
Trustpilot has continued to experience strong, organic growth on its platform with an average of 12,500 new domains added to the platform per month in 2020. As of December 31, 2020, over 529,000 domains — both claimed and unclaimed — were reviewed and over 120 million customer reviews were hosted on the platform. Its SaaS products and services also recorded over 19,500 subscribing customers from over 100 countries worldwide.
Trustpilot has also recorded strong financials over the years. The company has bookings of $75.2 million, $95.6 million and $113.2 million for the years ending December 31, 2018, 2019 and 2020, respectively. Total revenues were $64.3 million, $81.9 million and $102 million for the same period.
Trustpilot Potential
Trustpilot is now an important part of the e-commerce world, with startups like money transfer site TransferWise and energy supplier Bulb boasting top star ratings on the platform. And for investors, there are still more reasons to remain optimistic about this platform:
- A leading open platform: As an open, independent and transparent platform, Trustpilot’s numbers put it at a great vantage point as a global review platform. As of December 31, 2020, the company had hosted over 120 million reviews of businesses in over 100 countries worldwide. Trustpilot is certainly a universal symbol of trust.
- Global market opportunity: According to a Cavas8 report released in 2020, 89% of consumers in France, the U.K. and the United States checked reviews online before making a purchase. And with businesses increasingly seeking to establish trust online, there’s a long-term global market opportunity available for Trustpilot.
- Market leadership: Trustpilot operates a global platform and its global Alexa Rank of 301 as of February 1, 2021, placed it in the top 0.0001% of websites most visited worldwide. The company has experienced strong growth, with reviews hosted on the Trustpilot platform growing from 17 million on December 31, 2015, to 120 million on December 31, 2020. The volume of reviews on the platform reinforces consumers’ confidence in the reviews and leads more businesses to claim their domain.
- Best-in-class technology: Trustpilot’s robust technology platform lets it improve the experience of consumers who interact with the platform, provide data analytics and ensure the integrity of content on the platform. Its highly scalable technology lets it process 1,800 terabytes of data per month. The incorporation of artificial intelligence and machine learning helps Trustpilot bolster fraud detection while maintaining the integrity of its content.
- Avenues for long-term growth: With the leadership position it holds across various key markets, Trustpilot has multiple avenues to drive long-term growth in its business, including entering new markets, growing revenues from existing customers and developing new products and services.
How to Buy Trustpilot (LSE: TRST) Stock
As commerce increasingly moves online, there’s an expected increase in businesses seeking to establish trust online — and Trustpilot is at the center of this revolution. As the company works to become a universal symbol of trust, retail investors can use this frontier as a way to diversify their portfolios. The following steps will help you buy Trustpilot IPO stock through one of the best brokers.
Step-by-Step Guide:
- Pick a brokerage.
The first step toward owning a share of Trustpilot IPO stock is choosing an online broker to invest with. You’ll obviously have many things on the radar when picking a brokerage, but fees shouldn’t be a concern since most brokerages now allow commission-free trades. Aspects like account minimums, investment options, research and educational offerings, trading platforms and customer support will help you narrow your search.
If you’ve never traded before, consider enrolling with a broker that offers paper trading. This should help you test out a few strategies and tricks before putting real money on the line. And with the Trustpilot listed on the London Stock Exchange, you’ll want to pick a broker that lets you access international markets. - Decide how many shares you want.
Now that you have a preferred broker, it’s time to decide how many shares of Trustpilot you want to own. A brand-new IPO can experience huge volatility in the months following its debut, so your investment goals and risk tolerance should guide your decision.
To decide on the number of shares you want, take the amount of money you’re willing to invest and divide it by the current stock price. For instance, if Trustpilot is trading at $300 and you want to invest $1,500, you’ll own 5 shares of the stock. Stockbrokers now let you own fractional shares of a stock. - Choose your order type.
You’ve done all the research, crunched all the numbers and are confident about placing your first trade. You log in to your online brokerage, go to the buy tab and suddenly you need to choose an order type. Which one do you choose? Here are the most common order types for trading IPO stocks:
• Market orders: Arguably the simplest of all order types, a market order lets you buy a security at the best available price in the market at the moment you send your order for execution.
• Limit orders: A limit order is an instruction to the broker specifying the maximum price you’ll pay when buying a stock. A limit order only fills when the stock’s price reaches the limit price you entered — and within the time frame you specified in your duration. As a result, limit orders don’t guarantee execution.
• Stop-loss orders: You can use a stop order to buy a security when its market price reaches a specific value, called the stop price. Stop orders help limit losses or protect profits for a stock that has been sold short.
A stock order is usually the first step toward placing a live trade — do it carefully and accurately. Knowing the right order type to use can help reduce blunders and increase your chances of success when entering the market. - Execute your trade.
Once you’ve chosen an order type, all the heavy lifting is over. Just hit the Buy button on your dashboard and let your broker fill the order. Once filled, your shares of Trustpilot will reflect on your brokerage account.
Best Online Stock Brokers
Below is a list of best brokers for your consideration.
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
Should you Trust Trustpilot?
With trust as its focal point, the public market and the growing e-commerce landscape is a great home for Trustpilot. And with growing e-commerce making it increasingly difficult for consumers to know which businesses to trust and for businesses to really earn it, Trustpilot is poised to facilitate and steer the ballooning of the trust economy for years.