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Wall Street Beat: Market turbulence seen as just a speedbump in tech IPOs

Marc Ferranti | May 19, 2014
Despite a recent selloff in technology stocks, tech IPOs just keep coming and industry watchers appear confident that the trend will continue.

So mixed earnings for traditional vendors do not necessarily translate into caution in investing in companies with disruptive technologies.

What's more, the U.S. equities markets are still the most highly liquid, capitalized markets in the world, and remain attractive to foreign companies, noted both Fitzgibbon and McLaughlin.

There is also at least one major factor in considering a U.S. IPO that is not directly linked to how the markets are doing in any given period, McLaughlin noted.

"Launching an IPO in the U.S. is also about branding," McLaughlin said. "It's telling the market, 'we're here.'"

The recent slump in tech stocks is having an effect. Cloud storage company Box, for example, has delayed setting IPO terms.

Nevertheless, "The IPO pipeline remains robust," McLaughlin said.

At the close of the day Friday, Zendesk was up by $1.86 at $15.25 and TrueCar was up by $1.06 to $10.06. While those are not moonshot numbers, they are indisputably in positive territory.

 

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