> We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.
Fundamentals seem solid, gotta get me some of those shares!
Fundamentals seem solid, gotta get me some of those shares!
Another reason can be - investors are more interested in growth multipliers. X% YoY etc. As long as the potential for profitability exists on paper.
So in your example, and offer of 13% annual yield but with %400 commission is not a profitable one.
I'd be interested in what their strategy is and what they want to dominate. Corporate backups? The problem is corporate stuff is mostly in the cloud already. Home use it is handy but it is competing with Apple and Microsoft, and I use them mostly for the "Dropbox Reason" that they make it easiest to backup my drive. I never think about them and forget I am a customer. If they could backup iPhones simply I think that'd help but apple probably has that garden walled off.
We offload some of our Veeam backups to it.
I think they could compete with an S3 provider that’s better than Glacier or so. Especially if you can start presenting it to say…Linodes or something.
So the market isn't really irrational. You might argue our interest rates and monetary policies are irrational. I would agree with you.
You cannot short post IPO until the stock becomes marginable.
What you can do, if have a lot of $$, is have one of the desks immediately at after the IPO write you a synthetic short position using an over the counter option.
This doesn't happen until trades from the IPO "settle" t+2 (standard time for a trade from a buyer to a seller to be booked, and for a buyer to actually receive ownership of the shares. Ownership in this case meaning you can lend / margin them etc)
Options usually won't be listed for a week or so at the earlier until after the IPO, so whoever mentioned that below is wrong.
Varies deal to deal and if traditional listing / direct but that is the gist.
It's also a bet that they will fail quick enough to make this the best opportunity for your money.
Up, or down, there are always sales at hand in price movements. And, everyone has a price.
The common upward bump is partially because, why would you IPO if you didn't think there was long value? But also (I think) because in the first few days there isn't that much interest (volume of shares that are 1. tradeable and 2. which people want to let go of ~ IPO price), so the supply is constrained and the supply/demand value dynamic is biased up.