IPO: revival or fizzle?
After much IPO fanfare, ARM, Klaviyo, and Instacart’s shares took a wobble, prompting concerns that the IPO revival could fizzle out. IGTV financial analyst @AngelineOng gives us a recap of the IPO mood music so far.
(Video summary)
Instacart and Klaviyo: disappointments and doubts in the IPO market
This video explores the recent performance of the IPO market, the place where companies first sell their shares to the public. It mentions some big names like Instacart and Klaviyo, which have recently gone public, meaning they now have shares that anyone can buy. This has made people hopeful that the IPO market is making a comeback after being slow for the past two years.
ADR performance
However, IGTV presenter, Angeline Ong, discusses how the performance of Instacart and Klaviyo has actually been disappointing, which has made some people skeptical about the market's strength. She also talks about American Depositary Receipts (ADR), which are shares of foreign companies that are made available for trading in the US. She suggests that if we want to understand how Klaviyo is doing, we should check the ADR for Klaviyo on an hourly basis. Apparently, it hasn't been doing so well recently and its shares have fallen quite a bit since Wednesday. This is not good news for the IPO market, as it adds to concerns about its strength.
Despite some disappointments, Angeline mentions that the IPO market has managed to grab the attention of investors again, especially because of high-profile companies like Instacart and Klaviyo. These companies going public has made people more interested in the IPO market, which had been quiet for a while.
However, there are still challenges ahead. The video points out that offering new stocks might be difficult because interest rates are going up and could stay high for a while. Additionally, the US stock market has been unstable recently, which makes people worried about IPOs.
To sum it up, the IPO market has the potential for a comeback with the entry of big companies like Instacart and Klaviyo. However, the disappointing performance of some listings raises doubts about how strong the market really is. Challenges like higher interest rates and market volatility add even more uncertainty to the future of IPOs.
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