Here's what could bring an end to the market's IPO high, according to one expert

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Wall Street's reaction to money-losing companies like Lyft and Uber going public is a key factor in whether their valuations can hold up, says Renaissance Capital's Kathleen Smith.

div > div.group > p:first-child"> The tidal wave of highly anticipated initial public offerings has already begun, with Levi Strauss re-entering the public sphere last week. Still on the horizon are the IPOs of popular ride-hailing services Lyft and Uber, along with Pinterest, Airbnb and others.

"A very important test is going to be how the market reacts to these money-losing ones: Lyft, Uber, Pinterest," Smith said Monday on CNBC's "ETF Edge.""How are they going to be priced and traded?" "We knew that our ETF, as it performed so well this year, meant [that] the window's opening for IPOs. We know from our studies [that] the early ones out are always the better performers for investors," she added.

"The IPO market now, as opposed to the internet bubble, is much more institutional, so we're expecting the price discovery to be pretty good compared to what it was in the bubble period," Smith said."It means that big institutions are going to control the ownership, early on, of these companies."

 

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