3 ms·
I don't think so. The same thing happened to SNAP where the stock immediate spiked after the IPO due to speculators. Now that a year has past since the IPO, it
by Aunche 9y ago
I don't think so. The same thing happened to SNAP where the stock immediate spiked after the IPO due to speculators. Now that a year has past since the IPO, it turns out that the IPO price was pretty reasonable.
- rossdavidh 9y agoThat sounds right from the point of view of the whole economy, and is this stock priced correctly. But I think if I were Dropbox I'd rather have sold my stock at an even higher price, and if the IPO buyers take a loss on it I wouldn't think that's a problem. But, I am not experienced in such matters, perhaps I'm just missing something.
- Aunche 9y agoI suspect that it's to avoid conflicts of interest. If Dropbox makes a lot of money from an overvalued IPO, it may look like market manipulation even if it's not.
- mi100hael 9y agoIf the stock price bounces up and back down (but still closes higher after a year compared to IPO), no one is really upset. People chalk it up to hype. If the stock price is lower after a year than IPO, you start feeling a lot of investor pressure. No one likes losing money and people take it as a sign that there are problems with your business.