On the morning of June 8, Beijing time, it was reported that during the epidemic period, the US IPO market was in hot demand and the valuation soared, attracting companies to list one after another. However, the recent bear market was not friendly to these technology companies that rushed to the market during the epidemic According to the statistics of Bloomberg, since march2020, more than 80% of the IPOs with a financing scale of at least $500million have fallen below the issue price
Some of these "broken" stocks are the most anticipated IPO transactions in the past few years, such as Robinhood markets, an online brokerage, rivian auotomotive, an electric vehicle manufacturer, Bumble, a dating service, and duolingo, a language learning application.
This performance also reflects that investors' demand for the riskiest stocks shrank under the background of the Fed's interest rate hike. The Nasdaq 100 index, which is dominated by technology stocks, has fallen nearly 24% since it reached an all-time high in November last year, while the S & P 500 index, which reflects the broader situation, fell only half of this figure in the same period.
Markgrant, chief global strategist of colliers securities, said: "speculation will become popular again one day, but now we must calm down, be aware of changes in the situation, and understand that you can't always adopt the same strategy."
Markhawtin, investment director of GAM, a securities company, said that some of the fastest-growing enterprises are expected to benefit from the epidemic. Their shares rose sharply last year, and many expectations have been reflected in their share prices.
"Today's situation has changed from fully embodying value to containing great opportunities." He said.
It should be emphasized that the share prices of some companies are still above the IPO issue price. For example, snowflake, a software company supported by Warren Buffett, global foundries, a chip manufacturer, and airbnb, a home stay platform.
Roundhill ball metauniverse ETF covers roblox, meta platforms, NVIDIA and other companies. The ETF fund rose sharply at the end of last year due to the hot speculation of metauniverse. However, with the change of the macro environment, it has fallen by 40% this year, much higher than the 23% decline of the Nasdaq 100 index in the same period.