History Says This Is What Happens to Mega-IPO Stocks in Their First 12 Months
The history of initial public offerings is often volatile and not necessarily positive. The transition from a private entity to a publicly traded company brings new information but also emotions that are rarely seen after the initial period. Such conditions can bring to mind Warren Buffett’s saying about IPOs, and they were not positive.
The performance of the June IPO of Space Exploration Technologies and the debut of SK Hynix in the U.S. in July may speak to some of the challenges of this process, even when they involve investing in the most sought-after stocks.
Knowing that, investors should probably take the retired CEO of Berkshire Hathaway‘s words to heart and proceed with such events cautiously. Here’s why.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.