Shares of the three tech companies that recently conducted initial public offerings — including two unicorns — were all trading lower early Thursday, with the most recent, Klaviyo Inc. KVYO, +2.81% pulling back after a strong debut on Wednesday.
It was the same Tuesday when shares of grocery-delivery app Instacart, which trades as Maplebear, rose 40% above their issue price before paring gains to close the day up 12.3%.Instacart was in the “right place at the right time” during the pandemic, but Needham analyst Bernie McTernan said he doubts the path forward will be as easy for the grocery-delivery company.
These stocks debuted after a dull period for IPOs., The IPO market — while better than in 2022, when it was all but frozen — is still showing far less activity than in the year before the pandemic. There have been 75 IPOs this year, up 19% from a year ago, according to Renaissance Capital, a provider of institutional research and IPO exchange-traded funds. Still, that’s well below levels seen in frothier times.