A few years ago market pundits doubted the rally. They needed to see more M&A and IPO”s. Now there is a little bit of both and they cry BUBBLE!!!
Granted we are seeing more IPO’s, but I see it as a sign of a healthy market. You want to know what a bubble looks like?
When eToys.com shares hit a high of $84.35 in October 1999, who could have guessed that just 16 months later, the company would warn investors that its stock was “worthless?”
When theGlobe.com went public on November 13, 1998, its stock jumped a then-record 600% in its first day of trading. The company set the offer price at $9 a share, but the stock opened at $87. Shares of theGlobe.com rose to a high of $97 during its first day of trading before closing at $63.50. In August 2001, theGlobe.com’s stock was delisted by the Nasdaq stock exchange for failing to stay above $1 per share.
Before there was WebMd, there was drkoop.com. Remember C. Everette Koop the surgeon general? They raised 88million in 2009. Yeah, went bankrupt too.
It took just 14 months for the dot.com bust to kill off gardening products retailer Garden.com. By November 2000 — a week after Pets.com folded — Garden.com was trading at 9 cents per share and was forced to shut down.
So fast forward to today. So big deal, Candy Crush broke its syndicate bid first day and they are trying to shove $BOX out the door just to get it done. The first guy usually wins, so the cloud plays are all trying to get off the IPO runway so they aren’t left behind. This game of musical chairs has always existed.
Some win and some lose, but in no way, shape or form is it a bubble.