4 ms·

Arm and Instacart stocks have already lost most of their first-day IPO pops

18 points by cs702 3y ago

In hindsight, it looks like in both cases the first-day pop was achieved by constraining the shares available to buy. Both stocks have quickly lost most of their first-day pops: https://www.google.com/finance/quote/CART:NASDAQ?window=5D https://www.google.com/finance/quote/ARM:NASDAQ?window=1M Not a good omen for IPOs on the pipeline. Sigh.

softwaredoug 3y ago
NASDAQ itself is down over the same period, no? Sometimes stocks just follow the market trend.
datadrivenangel 3y ago
Buy the dip? Instacart seems overrated, but ARM may have a future for the next 10-15 years as they over monetize their IP.
- snvzz 3y ago
  If RISC-V didn't exist. If RISC-V wasn't as big as it already is.
deleted 3y ago
[deleted]
dev_0 3y ago
[dead]
shyn3 3y ago
We are about to go into a depression, why would people buy stocks when you have such nice Treasury rates.
yen223 3y ago
You should see the dip in Facebook when they first IPO-ed. I don't think the first few days of IPO is indicative of long-term performance.
rozenmd 3y ago
Generally speaking, IPOs are not for retail investors. Bankers involved in the transaction have an interest in making the IPO price as high as possible, since every dollar the stock price climbs after the IPO could have gone to them instead. I personally wait until a post-IPO earnings announcement before looking at newly IPO'd companies, but I might be more risk averse than most.
TheAlchemist 3y ago
Generally speaking, you should absolutely not judge a stocks performance on such a short time horizon. It's pretty much meaningless. That being said, I would take the bet that those IPOs mark the beginning of the end of the bubble in tech / ai stocks. I really wish more people focused just on long term holding - read about Warren Buffett etc. It's boring as hell, but it works. Speaking of which - is there a Hacker News equivalent for Investing ?
- mavilia 3y ago
  I think the HN equivalent for investing would be the Bogleheads forums. Named after the late Jack Bogle who founded Vanguard. https://www.bogleheads.org/ https://www.bogleheads.org/

18 points by cs702 3y ago

softwaredoug 3y ago

NASDAQ itself is down over the same period, no? Sometimes stocks just follow the market trend.

datadrivenangel 3y ago

Buy the dip? Instacart seems overrated, but ARM may have a future for the next 10-15 years as they over monetize their IP.

snvzz 3y ago
If RISC-V didn't exist. If RISC-V wasn't as big as it already is.

deleted 3y ago

[deleted]

dev_0 3y ago

[dead]

shyn3 3y ago

We are about to go into a depression, why would people buy stocks when you have such nice Treasury rates.

yen223 3y ago

You should see the dip in Facebook when they first IPO-ed. I don't think the first few days of IPO is indicative of long-term performance.

rozenmd 3y ago

Generally speaking, IPOs are not for retail investors. Bankers involved in the transaction have an interest in making the IPO price as high as possible, since every dollar the stock price climbs after the IPO could have gone to them instead. I personally wait until a post-IPO earnings announcement before looking at newly IPO'd companies, but I might be more risk averse than most.

TheAlchemist 3y ago

Generally speaking, you should absolutely not judge a stocks performance on such a short time horizon. It's pretty much meaningless. That being said, I would take the bet that those IPOs mark the beginning of the end of the bubble in tech / ai stocks. I really wish more people focused just on long term holding - read about Warren Buffett etc. It's boring as hell, but it works. Speaking of which - is there a Hacker News equivalent for Investing ?

mavilia 3y ago
I think the HN equivalent for investing would be the Bogleheads forums. Named after the late Jack Bogle who founded Vanguard. https://www.bogleheads.org/ https://www.bogleheads.org/