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So are these companies rushing to IPO before a 'potential' recession occurs? Does anyone else not feel confident about this? It seems fear driven and not very c
by almost_usual 8y ago
So are these companies rushing to IPO before a 'potential' recession occurs? Does anyone else not feel confident about this? It seems fear driven and not very calculated. Maybe I'm missing the bigger picture..
- drannex 8y agoLaunching before a recession is more ideal than before as funding would be easier to secure from the public vs private institutions especially if they continue losing money at this rate.
- koolba 8y agoI’m assuming the second “before” should be an “after”?
- almost_usual 8y agoRight but all this tells me is that the company will implode without further investment. The fact they are rushing to IPO seems like the private investors are wanting the average joe to be holding the bag when it does implode.
- strict9 8y agoDefinitely fear driven. Recently we've seen the biggest sustained downward drops in five years for tech stocks, I think beginning the process now is just too late.
- cinquemb 8y agoAgreed. FAANGMAN is down 22.4% from ATH, and probably in much better shape than Lyft or Uber. I'm probably going to wait for a pop in both prices of these (if they manage to go IPO anytime soon) and then short.
- kerng 8y agoFacebook is down for obvious reasons. Apple struggles with sales and innovation. Amazon just made no sense to be rising like that. Some of the others have done fairly well in the recent shake up, like Microsoft for instance.
- cinquemb 8y agoMicrosoft is by far, the cleanest dirty shirt of those. Netflix, Google (Alphabet), AMD, Nvidia… yeah, no.
- erikpukinskis 8y agoWhat’s the AN at the end?
- arcticbull 8y agoAMD and NVIDIA maybe?
- dragonwriter 8y agoAlibaba and Nvidia. Search for FAANGMAN in https://www.cnbcfix.com/fast-money-archive-june-2017.html https://www.cnbcfix.com/fast-money-archive-june-2017.html
- khamba 8y agoAMD, Nvidia
- closeparen 8y ago“Definitely?” I see articles on Lyft targeting an early/mid 2019 IPO at least as far back as August, months before the correction.
- paxys 8y agoThe timing may be fear driven, but the fact that they are going to IPO has been obvious for a very long time now. No reason not to go for it at this point.
- woolvalley 8y agoThe prep and planning required for these IPOs were done months before these market drops happened.
- almost_usual 8y agoRight but why now? Why would I want to invest in a company that would implode without private investment when we might be facing an economic downturn?
- thatoneuser 8y agoI would assume that when we’re talking about billions of dollars that the people in charge of creating an IPO strategy are a bit more ahead of the markets than the rest of us right? Full disclosure I’m not knowledgeable in this area, but it would seem to me that this is the case and having made plans months before the market turns isn’t necessarily proof that it isn’t being done with market knowledge. Just a thought.
- slededit 8y agoFrom what I read in Matt Levine's bloomberg column - not really. Bankers make money by being middle men, not predicting the market.
- seem_2211 8y agoYah, there are people in finance who try and work out what the market is doing, but those people aren't really the people who work in M&A banking.
- cinquemb 8y agoGlobal markets have been in a downward spiral since the beginning of this year, esp ex US (where most of the growth has been), and if you look at the divergence between the growth this year between US companies, fewer and fewer companies have been holding up the market.
- lvs 8y ago
- admax88q 8y agoMost big tech IPOs these days are just for the founders to cash out. Look at facebook's, they were essenitally done growing and innovating, the IPO was just a means for execs to cash in their stock at inflated rates.
- kerng 8y agoSomething similar might happen here with Uber... we will see.
- isoskeles 8y agoGet out while the getting is good, as they say.