Coinbase IPOed 5 years ago and is (and has mostly been) trading below its IPO price.
Perhaps private equity has become so skilled that when they finally sell to the public they leave nothing on table.
Perhaps private equity has become so skilled that when they finally sell to the public they leave nothing on table.
“Leaving nothing on the table” would mean selling few enough shares at the IPO that you have to overpay to get shares at the IPO. Previous valuations are known, as is that implied by each choice of IPO price when looking at the book. So the skill is just in the company not needing all that much money and being great at generating hype.
Granted, their profitability is better but in 2021 they were (rationally) valued based on Great Expectations which didn't pan out.
Now they're (rationally) valued on Much Less Great Expectations.
So I think it has nothing to do with skills of early investors (not the boogeymen, irrelevant private equity) and everything to do with Coinbase being a fast growth company at the time of IPO and being negative growth company after IPO.