A series of IPO crashes

A series of IPO crashes, as investors turned their backs on some of Silicon Valley’s most prized companies, has prompted forecasts of a broader reset in valuations after the long tech boom. Endeavor Group, the Hollywood talent agency… became the latest company to pull its initial public offering… The sharp reversal in sentiment follows signs of growing doubts among stock market investors about the prospects for some of Silicon Valley’s most heavily touted consumer tech “unicorns”… Of the five most valuable unicorns to make it to Wall Street this year, three — Uber, Lyft and Peloton — have seen their stocks trade down since listing, with an average decline of 28 per cent. The social networking site Pinterest fared better and is up 44 per cent, while video conferencing service Zoom has climbed 120 per cent, pointing to the much stronger reception for tech companies that sell to business customers… Despite setbacks, there have been signs over the past week that the Silicon Valley boom is still alive, at least for some companies. Airbnb took its first, cautious steps to Wall Street, signalling that it planned to list next year, while Stripe, a San Francisco payments company, was valued in a private fundraising at $35 billion, 55 per cent more than its last round early this year. 

Richard Waters and Richard Henderson

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