How to Buy CLEAR Secure IPO (YOU) Stock on the Open Benzinga – Benzinga

Are you looking to buy an IPO? With Sofi Active Invest you can participate in upcoming IPOs before they trade on an exchange.

Following the 9/11 terror attack, transportation security at our airports underwent a dramatic paradigm shift. No longer was public trust a given. Instead, the federal government implemented multiple protective measures to shore up prior vulnerabilities and to prevent another catastrophic assault. From this dire circumstance, CLEAR Secure, Inc. made its debut to deliver both safety and convenience to the security infrastructure.

However, only an extremely small minority of people have ill intent. To help move the line along, CLEAR uses a proprietary frictionless system for trusted travelers, drawing much intrigue for the companys initial public offering (IPO).

Peruse the IPO calendar and youll see that analysts anticipate CLEAR Secure to make its public market debut on Wednesday, June 30, 2021. Shares will trade on the New York Stock Exchange (NYSE) under the ticker symbol YOU.

Under the terms of the IPO, CLEAR Secure will offer 13.2 million shares of its Class A common stock. Experts observing the proceedings expect YOU stock to price between $27 and $30 per share. At the high end of the pricing spectrum, the market debut will raise $396 million. At that level, the valuation will reach approximately $4.34 billion.

Acting as lead bookrunners for the IPO are Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC) and privately held Allen & Company.

One notable factor that makes the YOU stock debut distinct from other IPOs is that select Robinhood users can buy shares of CLEAR Secure at the initial offering price, just before trading begins on the secondary market (in this case, the NYSE).

In a program called IPO Access, Robinhood partners with investment banks, acting as an institutional client on behalf of regular retail investors. Upon acquiring pre-IPO shares, Robinhood later distributes these equity units to its own customers.

Though the end purpose is critical to transportation security, very few people, if any, enjoy the hassle of going through airport security procedures. Even in locations that feature quick wait times such as Salt Lake City International Airport with an average wait time of just over 9 minutes the inconvenience of removing (and then quickly wearing) articles of clothing can be stressful, to say the least.

But at airports where the wait times are longer for instance, Newark Liberty International and its 23.1-minute average wait the annoyance can compound quickly, resulting in diminished traveling experiences for consumers. Unsurprisingly, then, CLEAR Secure garnered much support from frequent flyers over the years, commanding 5.6 million members and over 100 unique locations and partners across the North American market.

In 2020, CLEAR generated revenue of $230.8 million, which is up 20% from 2019s result of $192.3 million. Just as notable, the companys pro forma net loss last year was $10.8 million, representing a substantial improvement over the loss of $54.2 million in 2019. Most impressively, the security management solutions provider delivered top-to-bottom progress in 2020 despite the initially catastrophic impact of the novel coronavirus pandemic.

At the worst of the crisis, air travel volume fell to single-digit percentages of pre-pandemic norms. According to International Civil Aviation Organization estimates, the airline industry lost more than $370 billion in 2020, a truly staggering amount of red ink. Therefore, the expectation was for travel-related industries to crumble in 2020, not move in a positive trajectory. Yet CLEARs subscription-based service continued to bring in the numbers, boding well for its IPO.

Multiple factors point to the upside potential of CLEAR Secure, beginning with its favorable positioning relative to the competition. As mentioned above, CLEAR Secure operates as a subscription-based service, charging $179 annually. In return, subscribers dont have to deal with the dignity of temporarily going shoeless. Yet the Transportation Security Administrations PreCheck service only costs $85. Youd think that consumers would opt for the cheaper option, but millions prefer CLEAR Secure.

And this preference segues into the second bullish argument supporting the YOU stock IPO. For starters, CLEARs system incorporates a touchless biometric scan, which is a massive advantage in the age of COVID-19. Also, the company isnt just an airport security platform. Rather, its clients identification is tied to a security network that is connected with multiple partners. Therefore, CLEAR subscribers can enjoy hassle-free admission to sports and entertainment facilities again, a huge benefit in the new normal.

Third, YOU stock could rise in value in the secondary market due to the retail revenge phenomenon. For a one-year period or longer, the pandemic denied consumers the ability to travel wherever they wanted and advantage the products and services they typically enjoy. With funds saved up, along with receiving federal stimulus checks, consumers have more money than ever and they want to spend it.

Finally, the dramatic rise of consumer sentiment may clog up transportation security infrastructures as they ramp up to meet demand. Even before the pandemic, security wait times cost the U.S. economy over $4 billion. As society normalizes, many frequent flyers will be unwilling to individually contribute to this cost, which will indirectly support the narrative for YOU stock.

Though the CLEAR Secure debut is distinct in that it allows retail investors to participate in the public offering via Robinhood, theres a lesson here that everyone should learn regarding traditional IPOs: Underwriters only have a limited number of shares to sell and therefore are incentivized to sell them to their choicest clients. Therefore, this economic rationalism prevents retail investors from participating in IPOs.

However, Robinhood also has a limited pre-IPO share count offering. Chances are, if you want to acquire YOU stock, you must do so at the open. While you likely wont receive the best price with this method, its the easiest approach. If you know how to buy stocks, you can jump right in. If not, follow the simple steps below.

Prior to the advent of connectivity technologies, investors had to spend significant time deciphering which brokerage to use. In the analog days, certain platforms would vary widely in price. But with the mass proliferation of mobile investing apps, most of the key financial incentives to join, such as commission-free trading, are now standard.

This dynamic allows you to pick a platform that best suits your needs and preferences. Below is a list of best brokers to help guide your research.

Why state the obvious? Your share count is actually critical because it determines your risk-reward profile. The more shares you own, the more profits you accrue should the underlying stock rise in value. Conversely, the opposite is true. Therefore, only ramp up your share count for your highest-conviction ideas.

Familiarize yourself with the below concepts before placing your first trade:

To execute a market order, follow these steps:

Follow the same steps for market orders, except that you must also enter your desired execution price.

Before jumping on an IPO opportunity, you should review the Financial Industry Regulatory Authoritys guidance on restricted persons, which prevents people with access to insider information from unfairly profiting from the market debut.

While the Robinhood access to pre-IPO shares is distinct for YOU stock, other companies such as ClickIPO offer similar services. In this case, ClickIPO buys blocks of select pre-IPO stocks and offers them to interested retail investors.

Post 9/11, the security paradigm for the U.S. transportation network changed dramatically to address asymmetric threats. While everybody travelers appreciate the underlying purpose of screening protocols, they are both cumbersome and economically draining.

Fortunately, CLEAR Secure provides an innovative solution, offering accurate and touchless biometric scans to its subscribers for easy access across multiple airports and entertainment facilities. Better yet, as the COVID-19 crisis fades, travel volume will return in earnest, boosting demand for YOU stock.

0 Commissions and no deposit minimums. Everyone gets smart tools for smart investing. Webull supports full extended hours trading, which includes full pre-market (4:00 AM - 9:30 AM ET) and after hours (4:00 PM - 8:00 PM ET) sessions. Webull Financial LLC is registered with and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).It is also a member of the SIPC, which protects (up to $500,000, which includes a $250,000 limit for cash) against the loss of cash and securities held by a customer at a financially-troubled SIPC-member brokerage firm.

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How to Buy CLEAR Secure IPO (YOU) Stock on the Open Benzinga - Benzinga