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IKEA Stock: Is IKEA Publicly Traded?

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by Gavin in Blog
September 24, 2022 0 comments
ikea stock

Today, we are looking at IKEA stock and answering the question, is it publicly traded?

Read on to learn more about IKEA.

Contents

Introduction

IKEA is a well-known retailer with Swedish connections, especially considering the fact that the company was founded in Sweden by Ingvar Kamprad back in 1943.

The company is known for selling high-quality furniture and appliances, but many investors may be curious as to whether there’s a way to invest in IKEA.

The IKEA company is owned privately by a foundation, which means investors cannot directly invest in IKEA.

It may be disappointing to learn about the fact that IKEA is privately held.

In 2022, IKEA is still a privately held company that is headquartered out in the Netherlands.

This means that there is no direct stock listed on any exchange that investors can buy to invest in IKEA as a company.

This likely means that all investors would have to look for other similar companies instead to have the opportunity to gain exposure to the same sector.

Despite not being a publicly held company, the company of IKEA has done quite well since being founded back in 1943.

There is virtually no chance that IKEA ever becomes public because the company is privately owned by the Iterogo foundation, which supports the privately held ownership of IKEA as a whole.

This means that investors will likely never have the opportunity to acquire shares of IKEA on the stock market.

Why Has IKEA Remained Privately Held?

The primary reason that IKEA has remained private is that the company is managed and owned by a foundation that supports the independence of IKEA.

Due to this reason alone, investors will likely never have the opportunity to invest in the Swedish-themed furniture retailer.

For nearly 80 years, IKEA has remained private and has never publicly been listed on any stock exchange.

Since a singular foundation owns all of the company’s shares, investors will have to look elsewhere if they want to make an investment in this type of company.

There’s absolutely no sign of IKEA changing its internal visions at any point in the future, which ultimately means that investors and traders shouldn’t expect an opportunity to invest in IKEA at any point.

Despite losing a lot of hope that IKEA might go public at some point, there are still a few decent investment opportunities with other companies that sell similar appliances and furniture products.

IKEA Revenues

It was reported that IKEA generated tens of billions of euros in revenue during the 2021 calendar year.

The company apparently netted a profit of approximately 1.4 billion during the same year.

IKEA’s revenue grew every single year between 2009 and 2016.

The company started seeing a dramatic decline in its annual revenue starting at the end of the 2017 calendar year, and those drops continued through 2020.

The worldwide pandemic certainly played a role in IKEA’s struggles, but the company’s annual net revenue hasn’t bounced back quite as quickly as hoped.

There’s a good chance that the IKEA company will experience a slow and steady rise in annual net income as the worldwide economy emerges from the global COVID-19 pandemic that limited sales potential for large portions of time between 2020 and 2022.

How To Invest In IKEA

It will likely never be possible for traders to buy shares in an IKEA stock, but there may be a few ways to invest in companies similar to IKEA.

Some traders may be interested in acquiring shares in publicly listed companies and fairly similar to IKEA.

While it may be frustrating to know that it will never be possible to invest in IKEA directly, some traders may still be interested in similar investment opportunities from the same industry.

There are a few publicly listed American companies that have served as major rivals to IKEA for long periods of time.

These companies include Walmart, Amazon, and Target.

All three of these companies are excellent investment opportunities that may provide exposure to the same industry that IKEA serves.

  • IKEA is privately owned by a foundation, so it will likely always remain a private company.
  • The Swedish-themed company was founded in 1943 and is headquartered in the Netherlands.
  • IKEA is hoping to see its dropping profits turn around as it bounces back from the COVID-19 pandemic.

Investors shouldn’t be too devastated about not having the opportunity to invest in IKEA.

Many publicly listed companies on stock exchanges may offer even greater potential than IKEA.

You may want to consider some of the similar investment opportunities that we list, mainly because all three of these companies have their own pros and cons that may be appealing or intimidating to experienced traders.

Similar Investment Opportunities

Let’s take a look at a short list of three different companies that have a few similarities to IKEA.

All three of these companies are publicly listed, which means that investors can buy their shares right now on the stock market.

Walmart

Walmart was founded approximately 20 years after IKEA was founded.

After being founded in July of 1962, the company now has more than 10,000 retail locations and millions of employees contributing to the $570 billion dollar revenue reported in 2022.

Walmart’s stock price has been hovering around 125 dollars per share in 2022.

Still, the company has proven to be an excellent long-term investment, even when the economic conditions are less favorable.

Walmart may not be identical to IKEA, but it could be a great investment for traders craving a multinational retailer brand with long-term growth potential.

Target

Target is a publicly listed American department store that sells a variety of products, including furniture and appliances.

The company reported approximately 106 billion dollars in revenue in 2021 and was established in 1962.

Traders can acquire a share of Target’s stock at an approximate price of 145 dollars per share in July of 2022.

Amazon

Amazon is an e-commerce company that may be appealing to all types of investors due to the astonishing revenues that are produced annually.

With the company nearing $500 billion in gross revenue in 2021, economists agree that Jeff Bezos’ e-commerce marketplace is an excellent investment because of the incredible potential that exists.

Amazon is headquartered in the city of Seattle and continues to be an excellent and reliable investment for thousands of investors.

Even though its business model is slightly different from IKEA’s, the e-commerce aspect is part of the reason that the company is so successful, even as recently as the COVID-19 pandemic, where the company rebounded faster than just about any other company listed on NASDAQ.

Amazon, Walmart, and Target are three major retail and e-commerce companies that are similar to IKEA.

All investors should be aware that these similar public companies may be excellent investment opportunities.

While neither company will provide you with a direct connection to IKEA’s privately held company, several of them may yield greater financial returns.

Stock Price for IKEA in 2022?

Does IKEA have a stock price?

You won’t be able to find the IKEA stock price on a stock exchange because the company doesn’t have a public trading symbol.

Since the company hasn’t gone public since being founded back in 1943, there’s no stock price for IKEA in 2022.

Let’s look at some similar publicly traded companies to compare their stock price instead.

Alternative brands like Amazon and Walmart do have publicly traded stocks on the market.

Amazon is currently trading at 114 dollars per share in July of 2022, while Walmart is trading a few dollars higher at around 125 dollars per share.

Amazon and Walmart both pay generous quarterly dividends to their shareholders.

Some investors may like these dividend-paying stock options because they can also provide great returns for traders.

It may be helpful to factor in the dividend yield before you commit to an investment, but dividends shouldn’t be the only factor you consider when looking for a company like IKEA to invest in.

Final Summary | IKEA Stock

IKEA has been around for nearly 80 years and is widely considered to be one of the most famous furniture and appliance retailers in the world.

Investors are continuously frustrated by the fact that the company will likely remain private forever, but that doesn’t mean that there aren’t better stocks to invest in that share similar business mindsets.

IKEA’s company decisions over the years have led to massive revenue, but recent years have shown some concerns with profits as they seem to be dropping and stabilizing at lower annual levels.

Even with dropping profits, most analysts agree that the future for IKEA will likely be very good.

While there won’t be a public stock for traders to buy on a stock exchange, other companies should be considered as the worldwide economy rebounds from the worldwide COVID pandemic.

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

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