Tech IPO winners vs losers: A Historical Look | TigerDroppings.com

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Meauxjeaux
Memphis Fan
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Member since Jun 2005
16262 posts

Tech IPO winners vs losers: A Historical Look


Ran into this page while researching some tech coding stuff. Pretty fascinating.

It's amazing to mouse over and see how many (or few, really) are +% after three years as opposed to -%.

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Army Fan
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Member since Dec 2007
1998 posts

re: Tech IPO winners vs losers: A Historical Look


Think about the IPO process and how relevant it is to tech as an industry. Tech isn't capital intensive in the traditional sense. They aren't going to need that funding to build more of XYZ. It's human capital intensive,... and that's what tech IPO's finance. It's a way for that human capital, and the PE that's been funding them, to cash out. When they go public, for the most part, the companies are peaking. Obviously, there are exceptions. Look at those that have prospered and the marketshare that they've captured. Those companies usually have really, really good products that achieve widespread adoption.

PE has matured as well. It's been interesting to me how many of the tech firms that have survived and prospered have internal PE teams that fund external.






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tirebiter
LSU Fan
ATL
Member since Oct 2006
5128 posts

re: Tech IPO winners vs losers: A Historical Look


Not an IPO, but the purchase price paid by Yahoo for Broadcast.com to Cuban was in the stratosphere of ridiculousness. Even then a simpleton would have asked what management was thinking. I never have understood why retail investors feel a need to get in on a hot IPO as history illustrates a fleecing is usually commencing.





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OFWHAP
LSU Fan
Member since Sep 2007
4971 posts

re: Tech IPO winners vs losers: A Historical Look


quote:

I never have understood why retail investors feel a need to get in on a hot IPO as history illustrates a fleecing is usually commencing.


Most retail investors have no idea the percentage of IPOs that end up being unsuccessful. People see that Groupon and LinkedIn had huge pops in their IPOs and figure that every single tech company will have a similar IPO.






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