Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

NerdWallet IPO

How to trade on NerdWallet’s IPO

US financial comparison website NerdWallet has filed for an IPO which will take place on 4 November 2021. Learn about the company’s history and financials and discover how to get notified for NerdWallet’s upcoming IPO by registering for updates.

UK flag logo
FCA regulated
FSCS logo
Segregated funds
LSE logo
LSE listed

4 November 2021

NerdWallet going public

$5bn

NerdWallet’s valuation

Between $17 and $19

NerdWallet’s share price

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What does NerdWallet do?

NerdWallet is a personal finance company based in San Francisco, California. It provides a website and mobile app that promotes and compares financial products for its consumer base, which stands at 39 million monthly users as of October 2021. NerdWallet lets you track your net worth and cash flow, learn about your credit score, and provides financial guidance and product comparison tables on credit cards, loans, mortgages, insurance, and pensions.

The website is free of charge to customers, but NerdWallet receives affiliate commissions from most of the companies that provide information/recommendations or financial products, including banks, insurers, and brokers. It currently works with over 100 separate companies comparing thousands of products.

When is NerdWallet’s IPO date?

NerdWallet is expected to list on the Nasdaq exchange in New York on 4 November 2021. It will use the ticker ‘NRDS’. This comes after a successful year for financial IPOs, with the likes of Wise and Robinhood debuting on their chosen exchanges, while Monzo and Stripe are in talks of going public in early 2022.

Sign-up below to receive a notification when NerdWallet has listed on the Nasdaq exchange and is available for spread betting or CFD trading on our derivative platform, along with other future IPOs​ that may be of interest.

NerdWallet’s valuation

According to Reuters, NerdWallet could be valued up to $5bn.

The company is backed by multiple investment groups, such as Institutional Venture Partners (IVP), Silicon Valley Bank, SVB Financial Group, and iGlobe Partners. It has completed six rounds of funding raising a total of $105m, the most recent round taking place in May 2021.

What will NerdWallet’s share price be?

The company is expected to price its shares between $17 and $19 apiece, according to InvestorPlace.

How to trade on NerdWallet’s IPO

1. Register your interest

By entering your email into the sign-up box above, we will notify you when NerdWallet has listed on its chosen exchange, along with other IPOs that may be of interest.

2. Open an account

Choose whether you want to spread bet or trade CFDs when the derivative is available on our platform, and you can trade on NerdWallet’s competitor stocks in the meantime.

3. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Control your risk

Learn how to apply stop-loss and take-profit orders to reduce the risks that come with trading in the often-volatile stock market.

How has NerdWallet been performing financially?

In 2020, NerdWallet reported revenues of $245.2m, which is a 7% increase from $228.3m in 2019. This year, revenues have sped up slightly to $181.6m in the first half of 2021, in comparison with $137.3m in 2020.

These figures represent a growth of over 32%, which is a faster rate of growth than the previous couple of years and may suggest that the Covid-19 pandemic may not have slowed down the business’ operations to a large extent. However, as the company is still private, it hasn’t disclosed much more information on its financials apart from revenues, making it difficult to interpret NerdWallet’s performance in the long-term.

Please remember that past performance is not a reliable indicator of future results.

Why may investors be interested in NerdWallet?

NerdWallet has expanded rapidly over the past few years due to multiple international acquisitions, including US-based aboutLife, UK-based Know Your Money, and US-based Fundera. This has helped to increase the company’s market share on a global level, as it currently stands at only 8% outside of the US, according to Public.com.

A lot of NerdWallet’s competitors are also privately held companies, which means that it may have a slight edge when it lists on the stock market. Apart from Credit Karma, which is owned by publicly traded parent Intuit, some of NerdWallet’s biggest threats include Bankrate, FeeX, Credit Sesame, and Mint, which seemingly have no plans yet to list on the stock market.

Are there any drawbacks to NerdWallet’s IPO?

NerdWallet hasn’t disclosed much financial information such as sales, revenues, and fundraising rounds. It is also unclear at what point the company gained unicorn status of more than $1bn. Therefore, it could be difficult for investors to gauge how successful a company might be once it debuts on the stock market without financial information readily available.

Although the business was only marginally affected by the Covid-19 pandemic, with a 7% revenue increase, this may deter some investors as many may look for start-ups with a much faster growth rate. However, the 2021 figures seem to suggest that NerdWallet is getting back on track, and its user base has jumped significantly in recent years. Remember that past performance isn’t indicative of future results.

Take a position on NerdWallet’s competitors

Sage
- All clients
50%
Short

50% of CMC client accounts with open positions on Sage expect the price to drop.

Intuit
- All clients
95%
Long

95% of CMC client accounts with open positions on Intuit expect the price to rise.

Hargreaves Lansdown
- All clients
71%
Long

71% of CMC client accounts with open positions on Hargreaves Lansdown expect the price to rise.

Workday
- All clients
85%
Long

85% of CMC client accounts with open positions on Workday expect the price to rise.

Client sentiment is provided by CMC Markets for general information only, is historical in nature and is not intended to provide any form of trading or investment advice – it must not form the basis of your trading or investment decisions.

FAQS

Who are the underwriters for NerdWallet’s IPO?

According to Forbes, NerdWallet has hired a group of underwriters for the IPO led by Morgan Stanley, including Bank of America, Barclays, CitiGroup, and KeyBanc Capital Markets. These are all prominent financial companies within the industry.

What other finance companies are having an IPO?

Several companies within the financial sector have either had an IPO or are reportedly in talks for one later this year, including Robinhood, Wise, Stripe, and Monzo. See our list of upcoming IPOs.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Download our app to trade on IPOs on-the-go

Download our mobile app for iOS or Android to get started. Once NerdWallet has listed on the Nasdaq exchange, you will be able to spread bet or trade CFDs on our NerdWallet share price.

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