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How Jeff Bezos’s Workday and Domo Investments Fared in 2018

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Nov. 20 2020, Updated 2:02 p.m. ET

Twitter

In the previous part of this series, we looked at Amazon (AMZN) founder Jeff Bezos’s investment in Twitter (TWTR). Twitter stock surged by about 73% in the first trading day after its IPO to $44.90. However, the stock couldn’t manage to hold these gains, and as of January 8, 2019, it was trading at $31.80 per share. Now, let’s take a look at Bezos’s other key investments in companies that are listed and how these companies fared in 2018.

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Workday and Domo investments

According to the data compiled by crunchbase.com, Bezos directly invested about $60 million in American software firm Domo (DOMO). The company got listed on the NASDAQ in 2018 with an IPO priced at $21 per share. As of January 8, DOMO was trading with 7.7% gains at $21.14 month-to-date after ending the fourth quarter of 2018 with 8.5% losses. Thus, DOMO stock wasn’t far away from its IPO price of $21.

Similarly, Bezos invested about $85 million in the American cloud-based financial management services provider Workday (WDAY) in 2011 through his investment firm, Bezos Expeditions. WDAY was listed on the NASDAQ in 2012 with an IPO priced at $28 per share. In 2018, the company yielded solid 56.9% returns despite a 3.9% and 6.2% drop in the NASDAQ Composite and the S&P 500 Index (SPY), respectively.

Note that in in the fourth quarter of 2018, Apple (AAPL), Amazon, Microsoft (MSFT), Alphabet (GOOG), NVIDIA (NVDA), Facebook (FB), and Netflix (NFLX) lost 30.1%, 25.0%, 11.2%, 13.4%, 52.5%, 20.3%, and 28.5%, respectively. During the same quarter, Workday’s stock rose 9.4%.

According to the latest data by Reuters, 83% and 51% of analysts covering DOMO and WDAY recommended a “buy,” respectively. Analysts’ 12-month consensus target price for Domo reflected ~33.4% upside potential, while Workday was already above analysts’ consensus target price of $161.20.

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