The idea of being able to get big returns by buying into some of these high flying start ups certainly existed for a lot of people. The downside of having your stock go up that much is that investor expectations for what you're about to do grow with those share prices. So many cases, the expectation simply became way too far ahead of what compodies could actually deliver. There there were a lot of macro factors beginning to swirl that created uncertainty in the public markets. And all those things make it harder to forecast businesses that are already very difficult to forecast cas they are so early on their development.
Editor's note: This episode was recorded before news of the Coinbase's insider trading case was made public on Friday.
2021 was a milestone year for companies going public. In 2022, the tide turned. Dylan Lewis and Brian Feroldi look back on the IPO boom and discuss: - Reasons why companies go public - Newly-public companies that may never come back to IPO levels - Questions for investors to ask even when financials look strong - The trends that hit Robinhood and Rocket Mortgage - Lessons from pre-revenue companies that went public
Stocks mentioned: COIN, HOOD, RKT, NKLA, SPCE, JOBY, RIVN, LCID, SEMR, INTU
Host: Dylan Lewis Guest: Brian Feroldi Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl
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