NYSE President Stacey Cunningham cited the "resiliency of the economy," for the demand; however, the economy has taken a staggering turn in recent weeks as a spike in coronavirus cases in the U.S. and an oil price war has spurred investor fears about a halt to economic growth. The three major averages are in a bear market, meaning they are down more than 20% from their recent highs. Volatility has spiked with 1,000 point swings in the Dow becoming commonplace.
Smith explained that after a company is valued next to its peers already in the public market, a discount for volatility is slapped on the price. Alongside volatility, an economic downturn could hurt IPO valuations. When businesses of peers are struggling because of weakness in the economy, IPOs are also punished, said Smith. Plus, investors are less willing to take risk while uncertainty reigns. Smith said a similar dry spell for IPOs occurred in the end of 2018, when the U.S.-China trade war spooked investors and punished equities.
Airbnb IPO ! A referee once stopped a fight between Mike Tyson and some other guy telling that other guy ' wontcha come back some other time , huh ?! '
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