Wall Street's 'meh' response to tech IPOs shows Silicon Valley's valuation problem

Australia News News

Wall Street's 'meh' response to tech IPOs shows Silicon Valley's valuation problem
Australia Latest News,Australia Headlines
  • 📰 CNBC
  • ⏱ Reading Time:
  • 71 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 72%

Investors are unenthusiastic about the IPOs from Arm, Instacart and Klaviyo, even after a 21-month drought in tech offerings

the following day. They're three very different companies in disparate parts of the tech sector, but Wall Street's reaction has been consistent.

Investors who bought at the IPO price made money if they sold right away. Just about everyone else is in the red. That's fine if a company's goal is just to be public and create the opportunity for employees and early investors to get liquidity. But for most companies in the pipeline, particularly those with sufficient capital on their balance sheet to stay private, it offers little allure., a partner at law firm Debevoise & Plimpton who focuses on capital markets and private equity.

Juergens said, based on his conversations with companies, the market is likely to open up further in the first half of next year simply because of pressure from investors and employees as well as financing requirements. "At some point companies need to go public, whether it's a PE fund looking to exit or employees looking for liquidity or just the need to raise capital in a high interest rate environment," he said.to close at $63.59. Every day since then, the stock has fallen, and it closed on Thursday at $52.16, narrowly above the $51 IPO price.of trading, it was up just 12%, and that gain was practically all wiped out on day two. The stock rose 1.8% on Thursday to close at $30.65.

None of these companies were expecting, or even hoping for, a big pop. In 2020 and 2021, during the frothy zero interest rate days, first-day jumps were so dramatic that bankers were

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

CNBC /  🏆 12. in US

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

New Crypto IEO To Watch: Wall Street Memes Lists on Tier One Exchanges Sept 27New Crypto IEO To Watch: Wall Street Memes Lists on Tier One Exchanges Sept 27The buzz around the new meme coin Wall Street Memes (WSM) is growing as its initial exchange offering (IEO) approaches on September 27. With promises of
Read more »

Bank of America strategist becomes latest on Wall Street to raise S&P 500 targetBank of America strategist becomes latest on Wall Street to raise S&P 500 targetA top stock-market strategist at Bank of America expects deeply liquid large-cap benchmark to climb roughly 3.5%.
Read more »

Wall Street drifts again in the countdown to a Federal Reserve announcementWall Street drifts again in the countdown to a Federal Reserve announcementMarkets have made few big moves this week ahead of the Federal Reserve’s expected forecasts for where interest rates may be heading.
Read more »

The Wolf Of Wall Street Ending ExplainedThe Wolf Of Wall Street Ending ExplainedHow does The Wolf of Wall Street end?
Read more »

‘Dumb Money’ recalls GameStop squeeze, when regular folk put the screws on Wall Street (review)‘Dumb Money’ recalls GameStop squeeze, when regular folk put the screws on Wall Street (review)“Dumb Money,” whose title comes from the derisory term institutional investors call regular folk, wears its love of the little guy on its sleeve.
Read more »



Render Time: 2025-02-26 13:14:51