From what I've seen, most current tech companies are not doing well going public. I remember a similar lukewarm response when Snapchat went public.
In fact, I probably would've advised them to stay private. Tech companies have seemed to survive indefinitely bleeding VC money.
My guess is the stock will probably recover after a couple months.
Yes, a 63 billion dollar market cap is sure showing them!
>Tech companies have seemed to survive indefinitely bleeding VC money.
That's somewhat of the issue here. The outcome for VCs at this price is still somewhere between massive return and breaking even. It's the public at large that bought into the IPO via retirement funds that is hurting the most.
* Just an example I don't know if they bought into the IPO or not.
eg:
> CalSTRS has owned shares in Facebook, Inc. since its initial public offering in 2012, as well as through privately held assets prior to the IPO.
https://www.calstrs.com/statement/calstrs-ongoing-engagement...
As an alternative take amazon: they made a loss for years and years, but the size of their losses were reducing every year as they grew. The demonstrates a path to profit.
Of course for all these companies who have lost value post-IPO have already got the cash they were after. Post-IPO changes to value don’t change that and only impacts people who purchased at the inflated price.
This is quite clearly a one time event.
Their goal is to build monopolies by out-funding every other entrant in the space.
Reid Hoffman calls it blitzscaling.
Uber and Lyft do not have that kind of advantage.
The first 10 years of Amazon were blitzscaling at all costs (or as they said at the time "Get Big Fast!").