My Analysis of Intel's Mobileye IPO (Initial Public Offering)

10/27/2022

2022 has not seen many IPOs (initial public offerings). With this being a down year for the market as a whole, many companies do not want to go public with this current market. Mobileye Global Inc., however, has gone public today. They went public at $21 a share and have so far increased by 33.61%. The company is now trading at around $28 a share.

Mobileye is owned by Intel. They’re planning to keep 50% of Mobileye shares over the long run, but they currently still own 95% of the company. This means that Intel will still be able to sell 45% of their Mobileye shares. Mobileye is a company that is focused on making autonomous driving technology and advanced driver-assistance systems. They are located in Jerusalem, Israel.

With today’s increase in value, Mobileye now has a market cap of $23.12 billion. They are not a profitable company, and they actually lost $75 million on $1.39 billion in revenue for the 12 months ending Dec. 25, 2021. While I am very interested in their technology, this is a pretty hefty premium but that’s to be expected for this kind of company. That said, Mobileye’s year over year growth has been slowing. Here is a chart detailing that:

While I do like the idea behind Mobileye, the valuation they are trading at is a little concerning to me. If the stock falls after their IPO day, I could see myself buying some shares at a much cheaper valuation. I’m excited to see how this stock performs over the next few years.

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