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The stock being down doesn't mean that the IPO was quite negative. It just means that the price for the stock went down. If Twitter stocks were down after IPO,
by giacaglia 8y ago
The stock being down doesn't mean that the IPO was quite negative. It just means that the price for the stock went down. If Twitter stocks were down after IPO, would that mean that buying FB stocks is a bad investment?
- giancarlostoro 8y agoI agree, too many people overlook market corrections: https://en.wikipedia.org/wiki/Market_correction https://en.wikipedia.org/wiki/Market_correction Basically I always suspect every IPO to have a period of rising stock prices, and eventually it will dwindle. That's just the way the market works. You can't expect prices to rise indefinitely. Some corrections come sooner than others. I find it much more healthy for Lyft to not have an extreme correction at least. Note I'm not invested in Lyft or any related company (Uber), I'm just a humble novice investor.
- arcticbull 8y agoThe stock being down in the months after an IPO generally means the company raised on good terms as they were able to get more than market value for the equity they sold. That’s unrelated to whether it’s fundamentally a good company.
- lazyjones 8y agoThere's still a difference between "stocks are down because the IPO was way overvalued but the company makes a healthy profit" (FB) and "stocks are down because the IPO was a little optimistic for a company that's bleeding money and has a bigger competitor".