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> that you think is overvalued? That's the problem. Valuations are dreams and "best case scenario" right now because we haven't had an IPO to lock in valuatio
by brador 11y ago
> that you think is overvalued?
That's the problem. Valuations are dreams and "best case scenario" right now because we haven't had an IPO to lock in valuation for a long time.
It'll take a single IPO flop to start the bubble bursting domino run just like v1.
The real question then is: Can IPOs be succesfully propped to prevent every possible flop? because it'll take just one bad egg to bring down the house.
- mason55 11y ago> It'll take a single IPO flop to start the bubble bursting domino run just like v1. How about Etsy? Their IPO was a pretty big flop and there has been no domino run.
- brador 11y agoEtsy shares doubled from $15 to $30 quickly before sinking. Investors still got their ROI on the prop, so I'd call that a success in valley eyes.
- mortehu 11y ago> Investors still got their ROI on the prop Was there no lock-up[1] period? 1. http://www.investopedia.com/terms/i/ipolockup.asp http://www.investopedia.com/terms/i/ipolockup.asp
- presty 11y agousually the vcs' lock up period ends at ipo anyway, I don't think etsy is a good example - guess who followed the same pattern (of jumping really high on the 1st day and sinking a few months after IPOing) and is now worth 2x the peak ipo price? https://www.google.com/finance?q=NASDAQ%3AFB&ei=tNp7VbG5O9TAjAGl44DoCA https://www.google.com/finance?q=NASDAQ%3AFB&ei=tNp7VbG5O9TA...