4 ms·

I suspect that it's a risk thing, new internet IPOs probably have the highest risk considering what they do and how new they are.

• raganwald 15y ago
  My uninformed opinion is that many of these new internet IPO stocks are “greater fool” investments: They were bought for the purpose of selling to others without a lot of regard for their underlying fundamentals. A general decline in the stock market hits the demand for “fashionable” and “greater fool” stocks hardest, so I expect professional managers to dump them quickly.
  • jbooth 15y ago
    This is my read, too. People bought them thinking that it was 1997, turns out it might be more like 1937.
  • dpapathanasiou 15y ago
    In that context, GroupOn's first-day IPO performance (assuming the IPO still happens) is going to be interesting.