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Most comments focus on $SNAP itself, but as JumpCrisscross noted: It's also a bad sign for SV IPOs in general. With the upcoming FED hikes and the recent stock
by rmoriz 10y ago
Most comments focus on $SNAP itself, but as JumpCrisscross noted: It's also a bad sign for SV IPOs in general.
With the upcoming FED hikes and the recent stock market rally, one could say that it will be a lot harder for late stage companies to aquire further financial resources in VC/the private equity market.
After the $SNAP hype and crash the public market will probably not be willing to invest in other tech companies in the next months anymore, at least not at the current valuation level.
- prostoalex 10y agoThis market seems to over-reward profits (FB, NFLX, NVDA) and over-punish losses (TWTR, SNAP).
- beagle3 10y ago"over-"punish losses? Twitter hasn't made a profit once in its years of existence, and does not appear to have a way to make any. Snap said they might never profit in the prospectus. How would you value these companies to reach the conclusion that losses are "over punished"?
- rmoriz 10y agoThe market is always right. I just don't believe anyone is willing to take such big risks of failure anymore with so little chance of winning. SNAP was priced so expensive and just to justify the 17$ it would need to make money for years or grow exponentially. Which both didn't happen in the last couple of years, growth is even declining.
- prostoalex 10y agoThe subset of the market called "equities traded publicly on U.S. exchanges" is right within its own local maxima of pricing such securities, but it's still subject to inflows and outflows, which depend on macroeconomic picture, interest rates and attractiveness of other subsets. Specific securities, sectors or the stock market in general still can be overbought and oversold.