There is a kernel of truth here, as not every IPO becomes an Amazon or Google - just see Snapchat and Blue Apron. Some of these companies are overvalued based o

There is a kernel of truth here, as not every IPO becomes an Amazon or Google - just see Snapchat and Blue Apron. Some of these companies are overvalued based on expected future profits that never materialize - in which case the markets will stop pricing them at a premium. What is different this time is that private companies can raise huge amounts of capital that previously required being public. Early investors often cash out their shares in new equity rounds, keeping pressure off the company to IPO. The deflation of Snapchat and Blue Apron stock is proof that the markets eventually become rational. I don't see the need to be concerned.