Netskope IPO: Small Bet Opportunity in a Rapidly Growing SASE Market
"We haven\'t bought any of the stock yet, but why are we continuing to follow it? It\'s a fast growing industry. Cybersecurity is a secular growth trend. Netskope is a small company, but laser focused on one of the fastest growing portions of that fast growing industry, SASE."
The hosts discuss Netskope, a recent IPO in the cybersecurity space, highlighting its focus on SASE, which combines network security with cloud service delivery. They note the company\'s strong revenue growth (over 30% sequentially) alongside ongoing challenges including GAAP net losses, negative free cash flow, legal disputes with competitors like Fortinet, and a complex dual-class share structure. While not recommending an immediate purchase, they indicate that Netskope could serve as a small, strategic bet in a secular growth market if the company converts to free cash flow positivity.
NetSkope Jumps Post-IPO with Strong Cybersecurity Buzz
"And I just want to end on Netscope. Company went public yesterday, ticker NTSK. Traded well, traded up about 18% yesterday, up another double digit. So right now up 30% from its IPO price."
NetSkope (NTSK), a cybersecurity company, saw a strong debut post-IPO, rising about 30% from its IPO price. This performance is a notable positive data point amid increased attention to software and cybersecurity stocks in the IPO market.
Netscope IPO Shows Strong First Day Performance
"We did have another IPO today. NTSK, Netscope... finishing the day, it was up as much as 28% in its first day of trading, but finishing with about an 18% gain. This is after it priced at the top end of its range."
Netscope (NTSK) debuted robustly in its IPO, recording an intraday peak of 28% and closing with an 18% gain, suggesting strong initial investor demand as it priced at the high end of its range.