Sobering news from England's The Register:
Ooops! One in three tech IPOs now trading below their starting price
Around 33 per cent of the technology companies to enter the market in the last ten years are currently valued at a price lower than their IPO mark.
This according to researchers with analytics house Geckoboard, who studied 100 software, hardware, and social networking companies that have undertaken IPOs since 2006. Of those 100 companies, 67 are trading above their IPO valuation and 33 are below.
Among the 33 are Twitter (down 49 per cent), Zynga (down 66 per cent), and Groupon (down 84 per cent). Meanwhile, some the biggest jumps were seen by Facebook (up 249 per cent), VMware (up 95 per cent), and LinkedIn (up 199 per cent).
In general, the Geckoboard report suggests software companies were the safest bet to maintain their value. Gaming, meanwhile, had the lowest number of companies now above their IPO price.
Glad I got in and then got out of tech stocks when I did. I could have ridden MSFT for another year but I tend to be very conservative when it comes to investing. Made enough to be happy.
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