If you think cybersecurity is a good industry to invest in you might want to buy Tanium stock. It is a company valued at more than $3.5 billion that most people have never heard of, perhaps because it is still private. But a Tanium IPO is in the works and probably will happen sometime in 2016 or 2017.
Tanium is headed by the father and son team of David and Orion Hindawi and has some very big clients including Amazon, Target, and Verizon. The son (Orion) took over the top spot earlier this year but the duo will still work much the same as before along with their more than 340 employees. Having raised about $262 million in actual funding, it can be understood why its investors are hoping the company goes public soon and takes advantage of the fact that cybersecurity is in the spotlight almost daily.
You Need An Online Broker To Buy Stocks
Before you can buy Tanium stock when it has an IPO, you need to open a discount broker account online. There are many to choose from and all are reliable and industry regulated. Some of the more popular ones are E*Trade ($9.99 per trade), TD Ameritrade ($9.99 per trade), Scottrade ($7.00 per trade), Merrill Edge ($6.95 per trade) and TradeKing ($4.95 per trade).
You will essentially get the same services from each of these brokers and all of them have been highly rated in online customer service surveys at one time or another. It takes about 20 to 30 minutes to open up an account after which you will need to put money in your new account. That can be done by check, wire, or electronic transfer but it is the most important part that needs to be done before you can buy stocks in any company. Once that is all completed, you will then be able to purchase Tanium stock the first day it becomes available on one of the US stock exchanges.
Can You Buy Tanium Stock Before It Has An IPO?
For most investors the answer to this question is: No. You can’t get shares in advance of the IPO date because those are only offered to people who have connections to Tanium or have connections and influence with the underwriters of the IPO. Getting in on the ground floor of any initial public offering just isn’t something that everyday investors ever have the ability to do.
The day of the IPO is when Tanium stock will open on either the NYSE or the NASDAQ and at that time, anyone can buy stock in the company. You can purchase as little as one share through your online account or as many shares as you have the funds to buy. Unfortunately, the opening share price is always considerably higher than the insiders were able to secure weeks or months earlier.
Will Tanium Be A Good Investment?
One thing is for sure in 2016 and beyond: security is needed for every facet of our everyday lives that we live online. It is truly astounding how much of our data and information is online and it is extremely worrisome to all of us that we have become so vulnerable to hackers and terrorists.
Tanium is in a sweet spot industry wise and all they have to do is produce and become a leader in their field. It is reported that the company is cashflow positive and that 2015 saw a sales increase of more than 200% from the year before. Its ability to let clients scan all their company computers at the same time and in real time is a strong weapon against the all too common data breaches we often hear about today. While other companies are able to do something similar to this, Tanium’s technology is simpler and faster which also means cheaper.
Before you buy Tanium stock you should do as much research on the company and fully understand what you are buying. IPO prices often get pumped up the first couple of trading days on hype before investors come back to reality and decide that perhaps the company isn’t really that valuable. Anyone who buys the stock should also know whether they are buying it for the long term or as a short term play.