2011, Black year for IPOs on Nasdaq
Groupon, Pandora, Demand Media , Renren: while Facebook and many other social networking heavyweights, including Zynga, preparing their IPO, the stock of securities that have appeared this year at Nasdaq, New York , which are listed technology stocks, that is more mixed.
For each of these companies, the scenario was the same, driven by estimates of significant value, investors flocked to the opening of trading on these new entrants. Proposed $ 20 Groupon action completed its first trading day at $ 26, or 30% above.
Downtrend
But the excitement and increased short-term speculation in the early days, the demand falls rapidly. In the aftermath of its IPO, the action Pandora, for example, sharply unscrewed from 17.42 to 13.26 dollars. There then follows an interim period during which the plunge before make a recovery more or less marked. For LinkedIn, the recovery was net on the market at $ 45, the action has even rebounded to nearly $ 110, forty days after the start of trading.
The rebound that Groupon still does not seem to have reached – last week, the action has unscrewed from 15% two days in a row – was, for the incoming 2011, one step before the resumption of the decline in the course. If LinkedIn has remained well above its introductory course, Pandora, Groupon, Demand Media Renren and especially feeling the pinch. The shares traded Chinese social network today at a quarter of their introductory course.
However, technology stocks have been the oldest one year pretty good. Apple has grown stronger, Google, despite results considered low by the market, saw its share price up sharply since early October. After a dip in mid-August and early October, the Nasdaq composite index returned to a level higher than last year at this time.
UNCERTAINTIES ON THE VALUE OF FACEBOOK
The sharp falls of new entrants, higher than the market as a whole, raise again the issue of valuations of companies in the technology sector, and the existence of a speculative bubble similar to that which had exploded ten years ago years. Before its IPO, Groupon was valued by some estimates, 30 billion, far from the 12.7 billion which it entered the market. At current, the company is only worth $ 10.2 billion.
Facebook, whose shares tend to sell in secondary markets, in the spring open its capital on the basis of a valuation of $ 100 billion, a figure considered overvalued by some analysts but compatible with the price at which shares are currently selling the social network. In 2004, during its IPO, Google was valued at $ 23.1 billion.
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