Jan 10, 2017, 2:30 pm EST
Silicon Valley has a long history of providing some of the most exciting new stocks in the market. The class of 2016 tech IPOs was led by cloud services company Twilio Inc (NYSE:TWLO) and Japanese mobile app company Line Corp (ADR) (NYSE:LN). As these two stocks demonstrated in 2016, huge tech IPOs can be some of the most volatile and exciting stocks on the market.
Tech investors are always searching for the next Facebook Inc (NASDAQ:FB) IPO. FB stock is now up more than 225% in less than five years since its highly anticipated 2012 IPO.
However, just because a tech brand is popular and recognizable doesn’t mean its IPO will make a good investment. A little more than three years after its much-hyped 2013 IPO, shares of Twitter Inc (NYSE:TWTR) remain down more than 60%. Read
Jan 9, 2017, 11:00 am EST
The first major initial public offering of 2017 is coming in just a few months — at least if Snapchat parent Snap Inc stays on its tentative schedule. The thought is that the Snapchat IPO will go live in March, at an estimated valuation of $25 billion to $40 billion, and the offering is expected to raise up to $4 billion.
Source: Maurizio Pesce Via Flickr
But no S-1 is available, so all those details are just educated guesses. Why no S-1? Because the company does not expect to reach $1 billion in revenue for all of 2017, so the company qualifies for an option that allows it to keep its S-1 hidden until closer to the IPO date.
So why should you pay a valuation of up to $40 billion, or even $25 billion, for a company that’s not expecting more than $1 billion in revenue this year? Read
Jan 6, 2017, 12:43 pm EST
Frontier Airlines is reportedly planning an IPO.
According to unnamed sources, Frontier Airlines is working on its IPO. These sources spoke with The New York Times and asked not to be named due to the private nature of the IPO.
Here are a few things to know about the Frontier Airlines IPO. Read
Jan 6, 2017, 11:30 am EST
I hate to start the new year on a bum note. After all, we had quite a tumultuous ride in 2016, from a reality-TV-star-turned-president to a series of tragic losses in entertainment. You’d have to imagine that 2017 will be less dramatic than last. But don’t expect much comfort for Twilio Inc (NYSE:TWLO) and its legions of early believers.
Source: Web Summit Via Flickr
Twilio currently trades just under $28 per share. While that’s significantly better than its initial public offering price of $15 back in June, that figure is actually 3% lower than where TWLO stock finished after its first day of trading.
Twilio shares had Wall Street in a frenzy for its first few months, touching right under $71 at its peak in late September. Since then, it’s been almost completely downhill. Read
Dec 7, 2016, 10:58 am EST
Even though the market for initial public offerings has been light in 2016, we’ve still seen some noteworthy deals. For instance, Acacia Communications, Inc. (NASDAQ:ACIA) and AVX Corporation (NYSE:AVX) — two of the market’s best IPOs this year — have nearly tripled, at 190% and 180%, respectively. Past that, eight offerings have doubled, and 13 returned between 50% and 100%.
But why was 2016’s IPO volume so meager?
Well, the grueling correction during the first year stayed many a hand. Volatile, negative markets are not the right place for a budding publicly traded company. Moreover, the wild presidential race stirred up its own batch of uncertainty. Read