As we have been reporting within the final a number of months, the proverbial tide has gone out – and people establishments uncovered to overvalued know-how unicorns are those swimming bare.
Shares of Lyft, Uber, Slack, Peloton, to call a couple of, have imploded after debuting on the general public markets. Even WeWork, who could not even get listed, noticed valuations collapse after its IPO was shelved.
The turmoil on Wall Road has been highlighted in a current interview with former Nasdaq CEO Bob Greifeld, whose new warning concerning the IPO market reminded him of the times of the dot-com period. Everyone knows what occurred shortly after that.
In a CNBC “Squawk Field” interview Monday, Greifeld warned that the 2019 IPO market reminds him of the dot-com bubble.
“It is vital to acknowledge that the IPO market was getting fairly bubbly [nowadays],” stated Greifeld.
He stated know-how unicorns with multi-billion-dollar valuations had a number of the worst IPO debuts in fairly a while.
As seen under, shares of Uber, Lyft, and Peloton have been enormous flops this 12 months.
“In a way, it jogged my memory again of the dot-com period, whenever you had firms going public that had no recognized path to profitability,” stated Greifeld.
Greifeld additionally referenced the WeWork implosion, which noticed its IPO shelved and valuation collapse in a spectacular trend.
“That to me was in some methods a parody of a number of the hubris you see within the start-ups,” he stated.