People wait for T-shirts at the pop-up kiosk of online brokerage firm Robin Hood along Wall Street after the company goes public in New York City early on July 29, 2021 at an IPO.
Spencer Pratt | Getty Images News | Getty Images
The bull market for tech IPOs this year has become bearish.
The recent downtrend in stocks of high-value, high-growth, and losing gold companies has led to the massive sale of companies on the market in 2021. CNBC has identified 55 high-tech companies that debuted in the United States this year through IPOs, special acquisitions, purpose acquisition companies or direct listings. Only one of them — Globalfoundries — High price to less than 20%.
That is, the rest is in the bare market territory and is usually defined as a drop of 20% or more from the peak. Ten of these companies fell at least that much last week.
To make matters worse, 23 of these companies have lost more than half of their value since they reached their highest prices. Robin hood, Plunged 74% from the top in early August, Legal Zoom, Has plummeted 58% since its peak in July. All prices are closed on Monday.
Investors who choose a basket of offerings in the hope of building a diverse portfolio have not found a safe haven. NS Renaissance IPOETFTracking stocks of companies going public in recent years has fallen 18% in the last three weeks, down 26% from the February record.Of the index Top Holdings that is Modana, Uber, Snow flakes When zoom..
Across the tech sector, rising inflation and the threat of high interest rates are hitting companies that need additional external capital to support growth. Investor escape to safety has been hit hardest by corporate employees and other insiders who have not yet passed the post-IPO lockup period (which usually lasts up to 6 months after delivery). ..
Rivian For example, insiders will be locked until mid-2022 and will remain completely exposed to a 35% reduction in electric vehicle manufacturers’ inventories since mid-November. Fresh Works, NS Salesforce Competitors are down 50% from last month’s highs, and insiders are banned from selling until early next year.
Cloud software vendor GitLabIs expected to expire in early 2022, down 35% from its peak in November. News on GitLab employees worsened on Monday, with stocks falling another 9% in long-term trading. GitLab reported higher-than-expected revenue in its first quarter as a public company, but that didn’t seem to be a problem.
Lockups are not an issue for some IPOs. This year, half a dozen US tech companies went public directly, allowing existing investors to sell immediately instead of adding cash to their balance sheets.
Still used by a minority of venture-backed companies, direct listings have gained significant traction this year. Prior to 2021, only four notable companies— Spotify, Slack, Palantir When Asana — Chosen that path to the public market.
This year Roblox, Coinbase, Squarespace, ZipRecruiter, amplitude When Warby Parker Debuted directly via the list. Although each stock is down 20% to 50% from its highest price, employees were able to sell their vested stocks on the public market from day one and monetize at least a portion of their profits.
Tech SPAC was as problematic for public investors as it was for IPOs and direct listings.Car insurance company Metro MileTechnology that allows drivers to pay in miles rather than monthly charges has seen a plunge in the IPO group, down 89% from its February highs. SPAC merger It was completed.
Neighboring social networks, among other SPAC lists neighbor 47% off November highs, online lenders SoFi It decreased by 44% in 10 months.Media site Buzzfeed The company just completed the SPAC merger on Monday and was not included in the data for this story. But that was a nasty start. Stock price fell 11% On the first day.
Technology market price revisions could impact the few remaining IPOs this year, and perhaps by 2022.
HashiCorp will be released this week, with cloud infrastructure software companies Aiming for a valuation of about $ 13 billion, Based on the initial price range. However, these expectations were set last week before the tech market became a crater, and investors could pay attention to the company’s $ 22 million loss this quarter.
Next week, Samsara with the technology to connect physical products to the cloud will be about $ 11.5 billion, According to that Updated prospectus Published on Monday. Samsara’s losses shrank from $ 54.3 million in the year-ago quarter to $ 32.4 million in the most recent quarter.
All but one in the area of the bear market
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