Snowflake buyers beware. IPOs that doubled have poor track record after that debut

Berkeley Lights up 197% What they all have in common is they are either tech or biotech firms.

Are these outliers? Marginally, but the first day pop for IPOs this year is notably higher than usual. The historic first-day pop has been about 14% for an IPO...not this year. The average first day pop in 2020 is 36%, according to IPO tracker Renaissance Capital. What's going on? It's not that stocks are cheap. Matt Kennedy, senior IPO market strategist for Renaissance, notes that multiples for many tech IPOs this year are historically high: "People are willing to pay more for them because there is a higher degree of risk appetite," Kennedy told me.

If you're suddenly inspired to start buying high-flying IPOs, Kennedy advises investors to be cautious. The post-first-day returns of high-flyers this year is not encouraging. The 11 other IPOs this year that have popped more than 100% on the first day have averaged a negative 1% return from the first-day close.

FOMO = Lo$$es. Come see what our $SPAC community is up to. We crank out ideas DD and take the premiums in these IPO companies. Not the investment banks 🏦. Follow the SPACsquad go search SpacSchool where we help all understand the new IPO 2.0. Not buy / sell advice. No Hype

flehchur

If the market continues to be disconnected from fundamentals. I will just keep pulling money out slowly and keep adding to real estate. At least in a downturn, good or bad I can get a return on my 💰 via rent.

Buy signal

It's different this time!!

This is some predicted stock pricing for OpenLearning=ASX$OLL

Motley fool article on OpenLearning=ASX$OLL🚀

Look at the current chart's for OpenLearning=ASX$OLL 🤔OpenLearning has broken out into a new higher trend and looks to be going 🚀🚀🚀🚀🚀

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