, among a basket of others. Those three stocks trade at relatively high multiples, DocuSign by as much as 197 times forward earnings. However, each has outperformed the market as investors show a willingness to pay higher valuations for expected future growth.
Their future performance is contingent on whether they can deliver on those high expectations, says Smith.way back when — that company overpromised and underdelivered. We need the companies to underpromise and overdeliver, " she explained. Snap tumbled following its early 2017 IPO as worries over subscriber growth and C-suite turnover set investors on edge. From its March debut trading at $24 a share, the stock slumped 80% to bottom out at all-time lows last December."We're talking about technology, new inventions, we're talking about real growth. Even with
, which is a little bit more of a traditional company, it had a pretty high gross rate and [is] the dominant player in online e-commerce for pet supplies, " she said.The IPO Renaissance ETF, which does not yet hold Chewy, has soared 35% this year, more than twice the gain on the S&P 500.