Another tech giant, following Lyft's recent IPO, has finally gone public, and is valued $12.7 Billion. It has now surged 28% on its debut on NYSE, closing at a high $24.40 from its original $19 per share valuation.
Honestly speaking, I don't these tech IPOs slowing down at all. Awhile ago I have questioned whether this is a bubble or a bull market doing its job.
What do you think?
Perhaps they won't slow down but investors realise that these companies are WAY overpriced; look at Lyft trading at below $60.00 and getting sued up the ass by investors. I think these IPOs should start at more realistic prices.
Not sure why people are calling this a bubble. If you do a quick look at the companies that did an IPO in the early 2000s comparatively they were way worse than what they are now.
There is definitely an issue with companies these days valuing insane growth over profitability (fueled by VC) however at least if anything if you look at Lyft the market is a bit rational in a sense that Lyft hasn't surged 20%+ since opening. That being said I think Lyft still has way more to fall on since $16B+ market cap is ridiculous.
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