Roblox and Affirm IPO
Do you you all expect Affirm, Roblox, and Wish to perform similarly to DASH and ABNB in terms of massive run ups between IPO and initial trading price? I think the 3 aforementioned are actually more sound businesses than DoorDash or Airbnb, but they lack the same name recognition. TC: 215k #personalfinance #investments #ipo
Haha, you Wish. I can Affirm that these IPOs won't pop like Doordash.
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Yes because the market is insane right now. Itâs like 1999 all over again đŹ
Were you around during that time? Do you think itâs gonna be the same? I saw from an article that the number of IPOs is usually massive before a crash
Nope. I was in elementary school but I read an article about it today. But maybe Iâm just salty that I canât even get to $200k...
Does anyone know when the indication of interest periods are for these IPOs or the actual IPO dates?
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Wish just did their IPO today. The opposite of popping
Itâs actually way better to go down than pop. Airbnb missed out on almost $3 billion they couldâve gotten.
LOL nice to think like a CEO. Kudos
Popping is bad at ipo â it means the company undervalued its shares to the underwriters. Airbnb missed out on almost $3 billion they couldâve gotten. Going down means youâre over valued according to the market which means the underwriters got a bad deal. Ideally there shouldnât be a pop or tank of the ipo is properly priced. Wish may be a steal right now â itâs trading at less than 8x revenue. Reasonably priced growth stage tech companies trade between 20x-30x revenue. SNOW is the most insane â trading at like 350x revenue.
I agree with Wish being attractive in terms of valuation, especially relatively speaking. My issue with them is the company seems to be pedaling trash products and Iâm not sure how attractive the business itself is
More to the point, does anyone have a good idea of why tf theyâre delaying our IPOs? âPrice rose too muchâ Er... how is that a bad thing? I guess it falls under general âuncertaintyâ? Or maybe theyâre worried about it going down after the general IPO hype fades and that sending a worse signal than just starting lower? Spitballing here
Price change at ipo does not affect how much the company gets. Underwriters âbuyâ (but really line up institutional investors) the shares at a set price from the company. If the price on the public market doubles on ipo day then the institutional investors get the profit not the company. Airbnb for instance could have sold shares to the investors for 2x the price price they did. They missed out on $3 billion of capital they couldâve raised. A pop on ipo mean the company undervalued themselves to the underwriters.
Great point.
Roblox is going to go through the roof because of Wall Street Bets.
Everybodyâs kids are on Roblox. Also they are making money. Should do well.
Can you elaborate more? Whatâs your expected valuation? Like unity?