The 2018 IPO class featured a diverse mix of technology disruptors, consumer staples, and digital platforms. Companies like Zscaler, Pinduoduo, and Spotify entered the market with ambitious growth stories, while more traditional names such as BJ’s Wholesale Club offered defensive stability. Together, they reflected a year where investor appetite spanned both cutting-edge innovation and established business models.
| Stock (Ticker) | Total Return | Annualized Return |
| Pinduoduo (PDD) | 532% | 29.7% |
| BJ’s Wholesale Club (BJ) | 288% | 20.8% |
| DocuSign (DOCU) | 69% | 7.4% |
| Elastic (ESTC) | 27% | 3.5% |
| Moderna (MRNA) | 52% | 6.4% |
| Dropbox (DBX) | -5% | -0.7% |
| Spotify (SPOT) | 344% | 22.5% |
| Zscaler (ZS) | 875% | 35.9% |
| Dell Technologies (DELL) | 170% | 16.1% |
| Upwork (UPWK) | -11% | -1.7% |
Performance since then has been uneven. Some firms have compounded at extraordinary rates, driven by structural trends in cloud security, e-commerce, and digital media. Others, like Upwork, have struggled to translate compelling narratives into sustainable profitability. The gap between winners and laggards underscores the importance of execution, scalability, and competitive advantage.
By reviewing these IPOs with the benefit of hindsight, investors can see how business models, market positioning, and financial discipline shaped outcomes. The stories of these companies illustrate not just where markets were in 2018, but what it takes to thrive in the years that follow.
1. Zscaler (ZS)
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- IPO’d in 2018 at $16 per share
- Stock up 875% since listing, compounding at 36% annually
- SaaS-based model drives high-margin, recurring revenue
- Zero-trust security leader with strong upselling and a sticky customer base
Zscaler has become a leading name in cloud security, where enterprises are shifting away from legacy firewalls toward zero-trust architectures. Its cloud-native platform enables secure access to applications from any device or location, a critical capability for organizations adapting to hybrid work and cloud adoption.
Since debuting at $16 per share in 2018, Zscaler has surged more than 875%, compounding at nearly 36% annually. Revenue growth has consistently been strong, with analysts projecting 20–25% compounded growth through the rest of the decade. Its SaaS model delivers high-margin, recurring revenue, allowing the business to scale efficiently.
What sets Zscaler apart is its ability to expand within existing customers. Enterprises often adopt multiple modules, from secure web gateways to data protection, which drives larger deal sizes and deeper integration. That combination of sticky adoption, recurring revenue, and long-term demand for cybersecurity has made Zscaler one of the most durable IPO winners of its era.
2. Pinduoduo (PDD)
- IPO’d in 2018 at $19 per share
- Stock up 532% since listing, compounding at nearly 30% annually
- Built scale quickly with group-buying and social commerce model
- Continues to take share against Alibaba and JD.com in Chinese e-commerce
Pinduoduo has emerged as one of China’s most successful e-commerce platforms, leveraging a unique group-buying model that blends social engagement with bargain hunting. This approach resonated with cost-conscious consumers in China’s lower-tier cities, enabling the company to scale quickly in a crowded marketplace.
The stock has delivered a 532% return since its 2018 IPO at $19 per share, compounding at nearly 30% annually. Its ability to carve out share against Alibaba and JD.com underscores the strength of its model, which relies on driving high-frequency, value-driven purchases through gamification and customer engagement.
Pinduoduo’s growth reflects how business model innovation can be just as disruptive as technology itself. With strong momentum and expanding reach, it remains one of the standout examples of how a differentiated approach to consumer behavior can transform market dynamics.
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3. Spotify (SPOT)
- IPO’d in 2018 via direct listing at $132 per share
- Stock up 344% since listing, compounding at 22.5% annually
- Subscriber growth and ARPU expansion drive revenue
- Faces profitability pressure from licensing costs but benefits from first-mover advantage
Spotify redefined music distribution, going public in 2018 through a direct listing at $132 per share. The company remains the global leader in streaming audio, with a platform that spans music, podcasts, and emerging verticals like audiobooks. Its freemium model and global reach have made it the default choice for digital audio consumption.
Since listing, Spotify shares have climbed 344%, an annualized return of 22.5%. Growth has been fueled by subscriber expansion and increasing average revenue per user, though profitability remains constrained by high licensing costs. Analysts expect continued top-line growth as Spotify broadens its content mix and monetization strategies.
Spotify’s ability to dominate despite competition from Apple and Amazon shows the power of first-mover advantage and brand loyalty. While its margins lag, consistent user growth and platform expansion highlight its staying power in an industry defined by scale and engagement.
4. BJ’s Wholesale Club (BJ)
- IPO’d in 2018 at $17 per share
- Stock up 288% since listing, compounding at 20.8% annually
- Warehouse membership model thrived during COVID and inflationary periods
- Strong execution and a loyal customer base support steady growth
BJ’s Wholesale Club has proven that even mature business models can thrive post-IPO. Priced at $17 per share in 2018, the stock has since returned 288%, compounding at more than 20% annually. The company’s warehouse membership model benefited from both pandemic-driven stockpiling and inflation-era demand for value shopping.
What has fueled BJ’s performance is consistent execution in a defensive retail category. Its loyal customer base, recurring membership fees, and ability to compete with larger peers like Costco underscore its resilience. In volatile economic periods, BJ’s provided investors with a reliable consumer-focused name that grew steadily.
The story of BJ’s shows that IPO success isn’t limited to disruptive technology. Well-managed companies with proven models and stable demand can generate equally compelling returns for long-term investors.
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5. Upwork (UPWK)
- IPO’d in 2018 at $15 per share
- Stock down -11% since listing, with -1.7% annualized return
- Freelance marketplace struggled with profitability and competition
- Remote work tailwinds weren’t enough to offset execution challenges
Upwork, the freelancing marketplace, had a promising pitch when it went public at $15 per share: connecting businesses with a global pool of talent. However, its journey since IPO has been challenging, with shares down 11% overall, reflecting an annualized return of -1.7%.
The company struggled to achieve sustained profitability and faced intense competition from rivals like Fiverr and enterprise-focused hiring platforms. While the remote work boom created tailwinds, Upwork was unable to fully translate that momentum into consistent financial performance.
Upwork’s trajectory highlights the risks of investing in platforms with strong narratives but weaker execution. While the idea of the gig economy has lasting appeal, the company’s struggles underscore that differentiation and profitability are essential for IPOs to succeed in the long run.
Zscaler, Spotify, and the Best IPOs of 2018
Looking back, the IPOs of 2018 provide a clear reminder that long-term returns are determined by more than a company’s first day on the market. The strongest performers, Zscaler, Pinduoduo, Spotify, and BJ’s, combined durable demand with either disruptive innovation or consistent execution. They capitalized on themes that remained relevant well beyond their IPO window, rewarding investors with years of compounding growth.
On the other side, Upwork shows that strong narratives are not enough. Without profitability, differentiation, or clear competitive moats, even timely business models can falter. For investors, the lesson is straightforward: IPOs should be evaluated on the same fundamentals as any other investment, market leadership, financial sustainability, and long-term strategy.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
