How Companies That Had Their IPO in 2018 Performed Through Market Cycles: A Five-Year Retrospective

The year 2018 marked a prolific period for public market debuts. While 2017 had delivered a mixed bag of successful and failed initial public offerings, 2018 raised the stakes with even more ambitious companies seeking to go public. What followed was a fascinating study in market dynamics: some companies that had their IPO in 2018 became phenomenal success stories, while others faced unexpected headwinds. Understanding how these early-stage public companies navigated the subsequent market conditions—including the pandemic-driven surge of 2020-2021 and the bear market of late 2022—offers valuable lessons for today’s investors.

The Superstars: Companies That Had Their IPO in 2018 and Delivered Extraordinary Returns

Among the 2018 IPO cohort, a select few delivered remarkable gains. Moderna emerged as the standout winner, debuting in December 2018 at just $23 per share. By late 2022, the biopharmaceutical company’s stock had soared to approximately $120, representing an astounding +420% return. The company’s rise coincided with its emergence as a household name during the COVID-19 pandemic, transforming it into a cornerstone of the biotech IPO landscape and the biggest biotech debut in history.

Similarly impressive was BJ’s Wholesale Club, which launched its IPO on June 28, 2018, at $17 per share. The discount retail leader saw its shares climb to over $75 by late 2022, delivering a +344% gain. These massive returns stood in sharp contrast to the broader market downturn, demonstrating that companies with strong fundamentals and positioned in resilient sectors could thrive even during challenging periods.

Americold Realty Trust presented another winning story from the 2018 IPO class. The world’s largest operator of temperature-controlled warehouses debuted at $16 per share in January 2018 and traded above $25 by late 2022, generating a +59% return. Though less dramatic than Moderna’s surge, Americold’s steady appreciation reflected steady demand for cold storage infrastructure and real estate stability.

The Resilient Middle: When Companies That Had Their IPO in 2018 Held Ground

DocuSign represented a compelling middle-ground success story. This cloud services provider went public in April 2018 at $38 per share with a transformative offering—digital signature technology that became essential during the pandemic-driven shift to remote work. By late 2022, despite a pullback from its 2021 high of over $300, DocuSign traded at approximately $51.67, translating to a +36% gain since IPO. Those who invested at the public launch price would still be profitable, a testament to the company’s underlying value proposition.

Nio, the China-based electric vehicle manufacturer, captured investor enthusiasm around the EV sector’s long-term potential. Debuting at $6 per share in September 2018, the stock had nearly tripled to $17.62 by late 2022, representing a +194% return. Though volatile, Nio’s trajectory reflected broader confidence in the electric vehicle industry’s trajectory, even as overall market conditions deteriorated in late 2022.

The Disappointments: 2018 IPO Companies That Struggled

Not all companies that had their IPO in 2018 thrived. Spotify, the music streaming giant that many anticipated would be a breakout success, launched with significant fanfare on April 3, 2018, at $165.90 per share—with no preset price and no underwriter involvement. The stock initially climbed to $169 on its first trading day, closing at $149, but failed to sustain momentum. Despite reaching $364 in 2021, Spotify retreated to $89.14 by late 2022, representing a -46% loss for those holding since IPO.

Dropbox faced similar challenges. The cloud storage provider, which had been anticipated as a major player, debuted at $29 per share in March 2018. However, the stock tumbled to under $20 by late 2022, translating to a -31% loss. Dropbox’s struggle reflected intense competition from larger tech giants like Amazon and Alphabet’s Google Drive, which offered comparable services integrated into broader platforms.

ADT, the security and automation solutions provider, was particularly hard hit. Launching at $14 per share in January 2018, the company’s stock collapsed to $7.54 by late 2022, a -46% decline. Despite initially being praised as “a powerhouse in its business,” ADT had used most IPO proceeds to service debt from previous acquisitions, leaving limited capital for growth investments.

Cushman & Wakefield, the global real estate services firm, went public on August 2, 2018, at $17 per share. The stock subsequently experienced a turbulent journey—collapsing during the pandemic, recovering through 2021, and then deteriorating again in late 2022 as rising interest rates pressured commercial real estate. Trading at $11.79 by late 2022 represented a -31% loss from IPO.

Domo, the enterprise cloud platform for business data integration, debuted on June 29, 2018, at $21 per share. While the company showed steady revenue growth and despite peaking at $97.70 in August 2021, the stock had fallen back below its IPO price to $16.64 by late 2022, a -21% decline.

What the 2018 IPO Class Reveals About Market Cycles and Sector Dynamics

The divergence in outcomes among companies that had their IPO in 2018 reflects fundamental truths about public markets. Pandemic-driven beneficiaries like Moderna and DocuSign surged, while traditional cloud storage and commercial real estate faced structural headwinds. The 2020-2021 rally lifted many boats, but the subsequent bear market of late 2022 exposed which companies possessed genuine competitive advantages versus which were merely riding sector momentum.

Technology companies dominated the 2018 IPO class, yet tech as a sector proved particularly vulnerable to market cyclicality. Conversely, essential services like cold storage (Americold) and membership retail (BJ’s Wholesale Club) proved more defensive, generating consistent returns across market cycles.

Investing Lessons: Revisiting the 2018 IPO Companies Today

For investors reflecting on the 2018 IPO cohort, several insights emerge. First, IPO purchase price alone does not determine long-term success; competitive positioning and market tailwinds matter enormously. Moderna’s transformation from obscurity to household name coincided with its 420% gain, while Dropbox’s commoditized offering struggled despite strong initial fundamentals.

Second, companies that had their IPO in 2018 demonstrated that market timing creates winners and losers. Those who bought during the 2022 bear market downturn have benefited from subsequent recovery, while early IPO purchasers in several cases faced substantial drawdowns.

If you had invested in the full basket of 2018 IPO companies, you would have experienced significant volatility. Yet selective positions in category leaders—whether Moderna in biotech, BJ’s in retail, or Americold in logistics—would have delivered meaningful returns. For those reconsidering these companies in 2026, the question becomes whether valuations today reflect their current competitive positions and future prospects, not merely their IPO-era fundamentals.

The core lesson: understanding why companies that had their IPO in 2018 succeeded or failed matters far more than simply predicting IPO price trajectories. Choose to invest in companies you fundamentally understand and that serve genuine market needs. The 2018 IPO class taught that lesson powerfully—in both positive and negative ways.

Data referenced is historical as of late 2022 and subject to change. All percentage returns are rounded to nearest whole number. Current valuations and analyst ratings should be verified with current market sources before making investment decisions.