5 ms·

I'm skeptical about Tech IPOs. I wonder if as many people are going to buy into the hype as they did with the Facebook IPO.

colmvp 13y ago
Isn't FB now at a high a year after its IPO?
- jonknee 13y ago
  That's amazingly easy to do when your stock tanks out of the gate.
  - prostoalex 13y ago
    I think what he's saying is that it's at all-time high, inclusive of IPO price.
  - jamesaguilar 13y ago
    I don't know, personally I think 10% growth in the value of a mature company over a year is pretty good. I don't think it's reasonable to expect all tech companies to gain 20% on the day of the IPO. If they do, that's an indication that existing investors are reliably leaving a ton of value on the table.
- jlebron2 13y ago
  Yeah it is, but you didn't make nearly as much money if you bought during the IPO than if you got in when the stock fell to $17-$20 range. It was highly over-valued at IPO
  - tinco 13y ago
    I think those who held onto it when they bought the initial stock are happy with their gains. If the current price is stable or even growing, that means it was never over-valued. You are thinking too short term. If you have bought a stock at one price, and it currently has a higher price, that means you have made a good investment, regardless of what happened in between.
    - jlebron2 13y ago
      This is a matter of your investing preference and whether you are a buy-hold investor or a day-trader type who wants to get in at the lowest price. I simply wanted to point out I was skeptical and that FB stock tanked after IPO. I am by no means an expert on the stock market or IPOs :)
  - pbreit 13y ago
    "It was highly over-valued at IPO" Actually, the current stock price suggests that the IPO valuation was just about right and that other factors contributed to the initial tanking.
- smtddr 13y ago
  yes, and I am kicking myself for not buying it when it was around 16/share. I'm not missing out on twitter if I see similar fluctuations.
- cmod 13y ago
  FB is 15% above its IPO; LNKD is 2.6x above IPO; TSLA 8.2x above IPO.
  - debt 13y ago
    YELP at 4x above IPO
  - kybernetyk 13y ago
    > TSLA 8.2x above IPO Last year around the FB IPO I thought about what stock to buy. Either FB or Tesla. It boiled down to a company that is revolutionizing transportation with real world products VS. a company that enables people to click on virtual pixel cows without a real business model. The choice was easy.
    - WatchDog 13y ago
      So you chose facebook right?
    - deleted 13y ago
      [deleted]
    - melling 13y ago
      Really bad advice. Yes, you get to gloat because you got lucky... However, I hope people stop and think before listening to you. Yes, it's really cool that Elon hit it out of the park, but at the end of the day, that's not the way to make investment decisions. The market is a fickle place. TLSA could be worth have as much in a year and FB could be worth double. Of course, TSLA will still be worth more since its IPO price.
      - bennyg 13y ago
        Tesla's doing cooler shit, in my opinion, than FB is. Stuff that matters more, again in my opinion, for at least the U.S. and reducing our total dependency on oil. Look here (http://www.teslamotors.com/supercharger http://www.teslamotors.com/supercharger) for their plan to cover the US in two years, albeit through backwards routes, with supercharging stations. Tesla actually makes a good-looking electric car. This is all about marketing, and Americans love performance and slick cars - they don't care about the happy and petite (though not really, just going by marketing here) Prius or Nissan Leaf. Tesla is gonna' be huge and their stock is going to go up. It could halve, but I doubt it right now. I'm not an investor by any means - I don't have the money to invest, but I've watching them for a while. We should stop relying on oil, and Tesla is one of the few companies selling part of that dream with a beautiful product.
- yapcguy 13y ago
  Quantitative easing floats all boats...
- wavesounds 13y ago
  I think Twitter probably saw this as a good time to file.
aaronbrethorst 13y ago
/shrug. My FB stock is up 80% since purchase.
- jlebron2 13y ago
  Don't get me wrong, I'm not bashing the stock. Simply pointing out that after IPO it tanked. But congrats on the gains!
conanbatt 13y ago
You should be skeptical about all IPO's. They have a below avg market returns. The Intelligent investor mentions that many decades ago (maybe the 50's) IPO's were for accredited investors, because they were a known way for the saavy ones to profit from the ingenuity of the common investor. IPO's are overhyped and hence many people buy it regardless of its underlying asset, and hence drives the price up. As i mentioned before, IPO's in general have bad performances and the gain is more for the company and early stock investors that cash out, since getting into the market immediatelly gets you lots of fund/index and "silly" money.

colmvp 13y ago

Isn't FB now at a high a year after its IPO?

jonknee 13y ago
That's amazingly easy to do when your stock tanks out of the gate.
- prostoalex 13y ago
  I think what he's saying is that it's at all-time high, inclusive of IPO price.
- jamesaguilar 13y ago
  I don't know, personally I think 10% growth in the value of a mature company over a year is pretty good. I don't think it's reasonable to expect all tech companies to gain 20% on the day of the IPO. If they do, that's an indication that existing investors are reliably leaving a ton of value on the table.
jlebron2 13y ago
Yeah it is, but you didn't make nearly as much money if you bought during the IPO than if you got in when the stock fell to $17-$20 range. It was highly over-valued at IPO
- tinco 13y ago
  I think those who held onto it when they bought the initial stock are happy with their gains. If the current price is stable or even growing, that means it was never over-valued. You are thinking too short term. If you have bought a stock at one price, and it currently has a higher price, that means you have made a good investment, regardless of what happened in between.
  - jlebron2 13y ago
    This is a matter of your investing preference and whether you are a buy-hold investor or a day-trader type who wants to get in at the lowest price. I simply wanted to point out I was skeptical and that FB stock tanked after IPO. I am by no means an expert on the stock market or IPOs :)
- pbreit 13y ago
  "It was highly over-valued at IPO" Actually, the current stock price suggests that the IPO valuation was just about right and that other factors contributed to the initial tanking.
smtddr 13y ago
yes, and I am kicking myself for not buying it when it was around 16/share. I'm not missing out on twitter if I see similar fluctuations.
cmod 13y ago
FB is 15% above its IPO; LNKD is 2.6x above IPO; TSLA 8.2x above IPO.
- debt 13y ago
  YELP at 4x above IPO
- kybernetyk 13y ago
  > TSLA 8.2x above IPO Last year around the FB IPO I thought about what stock to buy. Either FB or Tesla. It boiled down to a company that is revolutionizing transportation with real world products VS. a company that enables people to click on virtual pixel cows without a real business model. The choice was easy.
  - WatchDog 13y ago
    So you chose facebook right?
  - deleted 13y ago
    [deleted]
  - melling 13y ago
    Really bad advice. Yes, you get to gloat because you got lucky... However, I hope people stop and think before listening to you. Yes, it's really cool that Elon hit it out of the park, but at the end of the day, that's not the way to make investment decisions. The market is a fickle place. TLSA could be worth have as much in a year and FB could be worth double. Of course, TSLA will still be worth more since its IPO price.
    - bennyg 13y ago
      Tesla's doing cooler shit, in my opinion, than FB is. Stuff that matters more, again in my opinion, for at least the U.S. and reducing our total dependency on oil. Look here (http://www.teslamotors.com/supercharger http://www.teslamotors.com/supercharger) for their plan to cover the US in two years, albeit through backwards routes, with supercharging stations. Tesla actually makes a good-looking electric car. This is all about marketing, and Americans love performance and slick cars - they don't care about the happy and petite (though not really, just going by marketing here) Prius or Nissan Leaf. Tesla is gonna' be huge and their stock is going to go up. It could halve, but I doubt it right now. I'm not an investor by any means - I don't have the money to invest, but I've watching them for a while. We should stop relying on oil, and Tesla is one of the few companies selling part of that dream with a beautiful product.
yapcguy 13y ago
Quantitative easing floats all boats...
wavesounds 13y ago
I think Twitter probably saw this as a good time to file.

aaronbrethorst 13y ago

/shrug. My FB stock is up 80% since purchase.

jlebron2 13y ago
Don't get me wrong, I'm not bashing the stock. Simply pointing out that after IPO it tanked. But congrats on the gains!

conanbatt 13y ago

You should be skeptical about all IPO's. They have a below avg market returns. The Intelligent investor mentions that many decades ago (maybe the 50's) IPO's were for accredited investors, because they were a known way for the saavy ones to profit from the ingenuity of the common investor. IPO's are overhyped and hence many people buy it regardless of its underlying asset, and hence drives the price up. As i mentioned before, IPO's in general have bad performances and the gain is more for the company and early stock investors that cash out, since getting into the market immediatelly gets you lots of fund/index and "silly" money.