European technology companies have made news as they are surpassing Silicon Valley startup IPOs. This year, 2019, has seen a lot of public IPOs published for trading that include, but are not limited to; Uber, Lyft, and Pinterest.
The Silicon Valley business model looks to be failing. As of now, most IPOs in the spotlight have declined in value frustrating investors.
How Are Current IPOs Doing?
Current IPOs are not doing great. While Pinterest has seen higher numbers and promising results, Uber and Lyft are the opposite. Both of these ride-sharing apps at first rose in numbers and then dropped in value for the next few days.
These numbers have scared investors into staying clear from these newly publicized IPOs.
Are We Heading Into An IPO Bubble?
With these failing IPOs, investors and stock market watchers fear for the worst. While it may seem frightening, the IPO bubble is not expected to burst for quite some time.
Instead, recently public IPOs have struggled within the market due to high market volatility. There are over 300 unicorns in the market, and more planning to go public, such as Slack. Since there are so many companies and start-ups in the market, there are bound to be some failures.
This point was reiterated by a co-managing partner at accounting firm Marcum Bernstein and Pinchuk, Drew Bernstein, “It’s reasonable to anticipate some disappointments in the mix.”
European Tech Model Fit For IPOs
There is a big difference in the European Stock Market and the United States Stock Market. As written by wired.co, “One possible issue is the fact that many US startups have stayed private – and grown in value – far too long to deliver spectacular stockmarket gains.”
European start-ups are known to go into the market earlier and more frequent. As of now, the European Stock market has over double the number of technology listings compared to the United States.