Revisiting the 2018 IPO Class: Eight Years of Market Ups and Downs

When 2018 rolled around, the initial public offering market was bustling with activity. Following a robust 2017, the new year brought a fresh wave of companies eager to go public—some destined for remarkable success, others bound for disappointment. Today, nearly a decade later, examining how companies that had their IPO in 2018 have fared offers valuable lessons for investors about market timing, industry dynamics, and the unpredictability of the stock market.

The cohort was diverse: cloud-based software firms, streaming services, retail operations, security companies, electric vehicle makers, and real estate investment trusts all crowded the IPO calendar that year. What’s remarkable is how their trajectories have diverged so dramatically since their debuts.

The Biggest Winners: When 2018 IPOs Soared

Some companies that had their IPO in 2018 became phenomenal wealth creators. Moderna’s December 2018 debut at $23 per share proved to be one of the most spectacular launches of the year—and beyond. The biopharmaceutical firm rocketed to prominence following its COVID-19 vaccine development, eventually climbing to nearly $450 in September 2021. While it retreated from those peaks, trading in the $120 range years later, early investors saw gains exceeding 400%, making it historically one of the largest biotech IPO success stories.

BJ’s Wholesale Club took a different path. Going public at just $17 in June 2018, the discount retailer caught momentum through steady operational execution and market confidence in its business model. The stock more than quadrupled in value, trading above $75 by mid-2022, delivering a 344% return for those who caught the IPO. These weren’t speculative fever dreams—they were driven by actual business performance and market demand.

Americold Realty Trust, the world’s largest owner of temperature-controlled warehouses, went public in January 2018 at $16 and nearly doubled to over $40 by 2021. Though it experienced market corrections, the stock still held ground above its original listing price, proving that real estate plays could deliver genuine investor returns during that period.

Meanwhile, Nio, the Chinese electric vehicle manufacturer that debuted at a mere $6 per share, nearly tripled in value to $17.62 by mid-2022. This reflected broader enthusiasm for the EV industry’s potential, even if the path forward remained volatile.

The Disappointing Stories: When 2018 IPOs Faltered

Not every 2018 IPO launch created wealth. Dropbox, which debuted at $29 in March 2018, lost nearly a third of its value by 2022, sliding below $20. Despite being a recognized cloud storage name competing against giants like Amazon and Google, the company faced intense market competition and struggled to maintain momentum through subsequent years.

Spotify’s trajectory proved particularly sobering for early enthusiasts. The music streaming giant launched at $165.90 in April 2018—itself an anticipated event—but the stock eventually shed more than half its value by 2022, dropping to $89. That represented a loss of 46% for investors who bought at launch, a stark reminder that being a household name doesn’t guarantee stock market success.

ADT, the home and business security provider, followed a similar downward path. Launching at $14 in January 2018, the stock had halved to around $7.50 by mid-2022. Though the company possessed strong fundamentals and an established market presence, the debt burden from Apollo Global Management’s 2016 buyout and subsequent merger weighed on performance.

Cushman & Wakefield, the global real estate services firm, slid from its $17 IPO price to around $12 by 2022, showing the particular vulnerability of real estate services companies in economic downturns and rising interest rate environments.

The Middle Ground: Solid Performers from the 2018 Class

Between the stars and the stumbles sat companies that delivered respectable, if unspectacular, returns. DocuSign, which went public at $38 in April 2018, managed to climb to over $50 by mid-2022, marking a 36% gain. The pandemic accelerated demand for digital signature solutions as remote work exploded, lifting the company’s value despite broader market headwinds. Even with subsequent corrections from its 2021 peak above $300, early investors still came out ahead.

Domo, the business cloud platform that debuted at $21 in June 2018, hit $97.70 in August 2021 before retreating to around $16.64 by 2022. Though negative by that point, the company demonstrated significant intermediate gains and maintained revenue growth momentum, suggesting the potential for eventual recovery.

What the 2018 IPO Class Teaches Us

Looking back at companies that had their IPO in 2018 reveals several investor lessons. First, being recognized doesn’t guarantee performance—Spotify and Dropbox were established names, yet they underperformed. Second, sector tailwinds matter enormously: those riding pandemic-driven digital transformation waves (DocuSign, Moderna) or benefiting from structural megatrends (Nio’s EV opportunity, Americold’s e-commerce logistics needs) outperformed companies in mature or challenged markets.

Third, the market’s initial valuation doesn’t determine long-term outcomes. Companies that went public during economic optimism sometimes faced headwinds from subsequent market deterioration, regardless of fundamental strength.

Moving Forward

For investors considering what the performance of 2018’s IPO class means today, several strategies emerge. Those holding losing positions might employ dollar-cost averaging to reduce their average entry price. Those still seeking exposure to compelling business models can still participate, even if the initial IPO entry point has long passed.

The broader lesson: the companies that had their IPO in 2018 remind us that launching publicly is merely the beginning of a company’s story, not its conclusion. Market success depends on execution, industry dynamics, macroeconomic conditions, and sometimes simply timing luck. Some 2018 IPOs became legendary winners, others faded to modest performers, and a few disappointed investors entirely—a microcosm of how stock markets actually work.