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If the valuation starts off so high that means future growth has already been priced in, which means there's no compelling reason for any new investor to buy th
by dstein 15y ago
If the valuation starts off so high that means future growth has already been priced in, which means there's no compelling reason for any new investor to buy the shares. The share price will drift downward for years (which happens to most IPO's) unless they can completely blow the doors off with new revenue.
- orijing 15y agoThe share price will drift downward for years (which happens to most IPO's) Do you have data to support that? IPOs are highly volatile, but would surprise me if most IPOs drift downward for years.
- dstein 15y agoIt's just my anecdotal experience. It's pretty easy to prove the IPO market lately hasn't been like it was in the 90's and that's the reason the big tech companies have been staying private.