One thing is for sure now days and that is that tech IPO's are hot and get a lot of media coverage. There is something about technology companies that take hold of investor's imaginations and make them see the future as being extremely bright....often a lot brighter than the reality.
How else do you explain Amazon, Tesla, Netflix, and a host of other tech companies that have valuations bordering on stupidity? Look at the astounding hype Alibaba received leading up to its IPO and then look at the stock's price today. BABA opened for trading on day 1 at $92.70 and sits at $75.06 as I write this. Definitely NOT a good investment so far!
Some other recent (within the last few years) tech IPO's include LinkedIn, Facebook, Twitter, Box, GoPro, and FitBit. Many of these stocks started off strong but have come down measurably from their highs. If the market hits a much anticipated correction, I fear what may happen to stocks like these with their inflated P/E ratios.
It seems fair to say that future technology IPO's in 2015 and 2016 will continue to garner more than their share of hype and interest, just because that seems to be what captures investor's imaginations. Potential IPO's coming in the months ahead include Spotify, Airbnb, Snapchat, Pinterest, Uber, and maybe even Xiaomi in a year or two. Here is a list of potential IPO's from the tech world that you will want to keep your eye on if that is what you like to invest in.
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