Could StitchFix Be a Millionaire-Maker Stock?

Buying shares of good companies during their early days on the public markets can offer investors a chance to maximize long-term gains. This at least partially explains why so many IPOs skyrocket as hopeful buyers rush in.

The challenge of investing so early in a company's public existence, of course, is knowing whether or not a stock will appreciate significantly over the long term, stay flat, or even go bust. For instance, Stitch Fix had a novel concept when it began operating in 2011 and eventually IPO'd in 2017. But when a company is trying to break new ground, investors are often better off waiting a bit to see if its revolutionary new business model will be profitable or a dud.

Stitch Fix has been building up its business now for a decade or so. Which path is it on?

Source Fool.com