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Thread: Collapse of tech stocks after IPO

          
   
  1. #1
    Garnik is offline Member
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    Default Collapse of tech stocks after IPO

    The interactive graph is interesting. Apparently only 2/20 tech companies that went public in 2011 are still trading above their offering price. The rest are all down.

    Tech IPOs start with a strong pop, and then promptly tank - GeekWire

  2. #2
    Adrenaline981's Avatar
    Adrenaline981 is offline Senior Member
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    Paging IPObubble haha.
    It's not enough to succeed.
    Others must fail.
    -Gore Vidal

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    IanZ63Q1's Avatar
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    carendt242's Avatar
    carendt242 is offline Senior Member
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    most tech stocks, especially right now, are more than fully valued by the time they reach the public via IPO. international private equity has created a frothy market and they use the IPO to cash out.

    even if you were to buy the shares in the secondary market, before the IPO, you would most likely be subject to lock-ups and, by the time you could sell after 6 months, your shares might have lost value.


    sadly, tech is one of the largest creators of wealth in the world; but antiquated securities laws ('accredited investor') and the unintended consequences of securities legislation (eg, SOX) have prevented the 'common man' from participating in this wealth creation, unless you were smart enough to ride Netflix from 20 -> 300 and dump it somewhere before it it now.

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  5. #5
    TurboBaron9's Avatar
    TurboBaron9 is offline Senior Member
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    now correct me if i'm blowing smoke out of my ass, i admit i dont know much about the stock market, but as far as i can tell, "analysts" hype the living jesus out of the companies as if they're the next coming of christ so that the companies open super high, and over time lose value since the opening value was artificially high to begin with.
    but i may be wrong.
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