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What you are seeing here is called anchoring. Now when the actual IPO happens and it's $10bn, you'll think it's a good buy. https://en.wikipedia.org/wiki/Anch
by jamesrom 10y ago
What you are seeing here is called anchoring.
Now when the actual IPO happens and it's $10bn, you'll think it's a good buy.
https://en.wikipedia.org/wiki/Anchoring https://en.wikipedia.org/wiki/Anchoring
- acchow 10y agoDoes this actually work on the real stock market? (i.e. with so-called "smart money" and not penny stocks)
- adventured 10y agoI've never seen an IPO underwhelm that much and have it not be a negative overhang. The financials will either support $10b, something more, or something less, in terms of exciting investors. If the financials - growth etc - are underwhelming, institutional investors are not going to magically get excited about the stock just because it comes out at $10 billion. Twitter (among others) has has been a disaster, institutions are going to be skeptical unless the numbers are extremely encouraging.