Home Ā» Big tech companies no longer go public. And it is a problem

Big tech companies no longer go public. And it is a problem

by admin
Big tech companies no longer go public.  And it is a problem

Two hundred thirty-eight days. It’s been nearly eight months since the Nasdaq there was the latest listing of a technology company with a capitalization of more than $ 50 million. An alarming fact. Because on the one hand it certifies the end of the boom in the sector. On the other hand, it opens up to its possible crisis.

According to a report by Morgan Stanley, the current slowdown in quotations on the technological list is worse and more lasting even if compared with that recorded in the years of the subprime mortgage crisis. Even worse than that which followed the bursting of the dotcom bubble at the beginning of the millennium.

It was already clear in the first quarter of the year that 2022 would be a difficult year for technology. Inflation and international uncertainties have initiated a drastic turnaround among investors, who, once the euphoria passed, have given rise to heavy sales. The Nasdaq since the beginning of the year it has lost 29%.

Ten points more than theS&P 500, the leading US stock index. The doubt is that tech companies have already raised enough money in the boom years that no more capital is needed.

But it is only a hypothesis, because in the meantime the list of companies that turn around is getting longer. At the beginning of the year, the platform Water transfer has decided to cancel his Nasdaq debut. Same thing for the offices of WeWork and for the software manufacturer Justworkjust to mention companies in the odor of capitalizing more than the 50 million mark.

See also  IDC: the evolution of the Italian printing market

On the other hand, the uncertain fortunes of the companies that went public in the last year seem to justify the fears of the managers. Coinbase, the largest cryptocurrency exchange platform in the world, has lost 80% of its value 16 months after its listing. In April 2021, it went public with a price per share of $ 360. Today he travels about 79.

Just to stay in the financial sector, the trading app Robin Hood it has lost 71% since the July 2021 IPO, going from $ 47 to $ 6. Companies that have also hit the collapse of cryptocurrencies, which in one year have burned two trillion in capitalization.

Bitcoin it dropped from $ 60 to $ 19,000. Victim of his own volatility, but in perfect harmony with what was happening at the Nasdaq. If it’s winter for crypto, it’s winter for big tech too. And it hasn’t stopped biting yet.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy