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Potential Unseen Cause of IPO Mayhem

1 点作者 jadler999将近 5 年前
Airbnb, Ant, Asana, Snowflake, Palantir, and more are all going public. They are probably chasing after a hot stock market and who is to fault them. But for years these companies have been able to remain private and raise ungodly sized Series E, F, and Gs and so the public markets weren&#x27;t interesting. Especially as these companies ran deficits in the hundreds of millions (looking at you Uber). Now in the Covid economy financials have taken even more of a back seat as public companies thrive despite the existing macroeconomic conditions. If this latest IPO batch is chasing after that same financial ignorance that is a problem for our financial system as a whole. It almost seems that the public market is actually more risk seeking than the private one in the Covid economy! Don’t these valuations have to come back down to earth eventually and could that eventually break something in the system?<p>Analysis of these new IPOs still has to be done on a case by case basis and I&#x27;m sure the wonderful investment banks of our world have a plan to get all of these stocks to pop on their first day. I wonder if this is also the end of the trend of large venture backed companies staying private for too long. Is it really a good thing for companies to come out before they are ready?<p>Maybe I am harping on something that is not actually that big a deal but it&#x27;s at the very least an interesting thought.

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