Perhaps if Uber wasn’t announced as one of the biggest IPOs in years, since Facebook (FB) and Alibaba (BABA) went public, the fail that the ridesharing giant experienced during its IPO debut wouldn’t be as demotivational as it is to investors.
Uber IPO the Biggest Disappointment of IPO 2019: Did Uber Killed This Year’s IPO Market?
Uber was at first valued at 120 billion dollars years prior to having the company announce their plan to go public with IPO, later on estimating the company’s value between 90 and 100 billion and later on 81 billion dollars.
Although the IPO market of 2019 seems to be slowing down in the second half, Uber didn’t kill the IPO market and shares such as Beyond Meat (BYND) are the ones to annulate that theory.
Uber (UBER) Might Have Failed, But Beyond Meat (BYND) Is Still Rising
Even though Uber failed to meet even the low end of its price estimates at the opening sale, Beyond Meat soared by 163% during its IPO debut, showing that investors still have appetite for unicorns and IPO offers.
Beyond Meat is proving that there is still room left for the upcoming IPOs as well, while WeWork, Airbnb and Slack are preparing to go public as well. Beyond Meat is still rising with adding 7% to its price with the latest closing.
Pinterest (PINS) on the other hand is starting to show weakness within a visible downtrend in the share price although the company had a successful debut.
Software Company’s IPOs More Valued in 2019 IPO Run
What appears to be an obvious trend of IPO market of 2019 is the case that software companies going public seems to be raising more interest among investors when compared to consumer companies.
Zoom Video Conferencing (ZM) as well as PagerDuty (PD), both focused on software and both debuted in April 2019, doubled their share price since the initial sale.
Based on the trends from Wall Street, where it is presumed that investors looking for IPOs are particularly enjoying subscription model and software companies, as well as predictability, Slack and Cloudflare should turn out to become IPO success stories.