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The Yext stock price is expected to price between $8 and $10 per share on Wednesday, April 12. After the underwriters set a price for YEXT stock, retail investors will be able to purchase shares of YEXT on Thursday, April 13.
However, Money Morning readers need to know they won't be able to pay $8 to $10 per share for YEXT stock.
The Real Yext Stock Price
The IPO offering price is what hedge funds, big banks, and large institutions pay for shares of a new public offering.
For example, Snap Inc. (NYSE: SNAP) priced its IPO at $17 per share. However, retail investors had to wait until March 2 to purchase shares of SNAP, which opened at $24. SNAP stock closed at $24.48 that day, leaving some retail investors with a tiny profit of 2%.
But the big banks and large institutions were the real winners, netting a profit of 44% in just one day.
And not only do these insiders make the most money, they still profit even when a stock slides...
The Snapchat stock price plummeted to an all-time low of $18.90 per share in intraday trading on March 17. For retail investors who first purchased shares of Snap on March 2, that's a loss of 21.5%.
Of course, insiders were still up over 11% from their original investment of $17.
IPOs are heavily hyped by Wall Street. But when the hype dies down in a matter of weeks or even days, it's retail investors who incur the most losses.
However, there is a safer way to play IPOs that maximizes long-term gains while limiting short-term losses.
In fact, this unique investment strategy has returns of 14.39% in the last 12 months even with shares of SNAP (down 15.84% in 2017) in its holdings.
How's that possible?
Here's everything you need to know...
The Yext Stock Price Could Be Volatile; Own This Instead
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Money Morning Director of Tech & Venture Capital Research Michael A. Robinson recommends investors interested in IPOs consider the First Trust U.S. Equity Opportunities ETF Fund (NYSE Arca: FPX).
FPX is an ETF, but investors can buy and sell it just like a stock. And because FPX holds a mix of recent IPOs and well-established companies, it's less risky than owning just one stock.
It holds IPOs that rolled out over the last few years, including SNAP, Match Group Inc. (Nasdaq: MTCH), and Blue Buffalo Pet Products Inc. (Nasdaq: BUFF). That lets investors capture the gains of IPOs, while risk is offset with well-known companies like Kraft Heinz Co. (Nasdasq: KHC).
So far in 2017, FPX has climbed 4.37%, while the Dow Jones Industrial Average is up just 3.96%.
By just owning Snapchat stock, your SNAP shares would be down close to 16%. But with FPX, investors have profited in 2017 and still own the hottest IPOs on the market.
Money Morning has been updating our readers through our free Profit Alerts service about the Yext IPO. We provide recommendations in real time that cover everything from IPOs to marijuana industry updates.
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