Tech Bubble Talk: Has IPO Market Reached a Limit?

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April 16 (Bloomberg) -- Bloomberg’s Leslie Picker examines the tech IPO market. She speaks on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

This bubble talk in ipos?

The difference in the environment now versus twitter six months ago, it is extraordinary.

I am sure they're looking for the same ipo as twitter has when everything was wonderful.

We have seen so many deals and so much activity that we are starting to see companies come out and investment managers that said, we have had enough this year, we have taken billions of dollars in terms of money for these ipos and we cannot really take any more.

You think about twitter.

It is pretty early in the company's life, as opposed to facebook, which has been around for years.

To have facebook, native this is a -- a good idea for us and they go out and always other web companies are following suit, saying this is a good time for us as well.

You have to get out when the going is still good, or else.

Are we seeing a shift right now?

We have seen 64% of companies go out without earnings before they made a profit.

That was last year and the trend continues this year.

We are starting to see these companies.

They are not profitable but they have been around for decades.

You're starting to see these companies that may not have fundamental backing but said, stocks are on the rise and fund managers want to outperform the market and perhaps the best way is with these ipos.

The first-day profits of 73% in twitter's case.

Why go public?

Why not sell yourself to a larger company that wants to bring you into the fold?

A lot of people are saying they're getting higher valuation in the markets.

While it is not a fun thing and you have to open your chest of drawers to the whole world, especially able like us would be depressed, they are getting higher valuations in the public market.

With the recent selloff in the nasdaq 100 and the broader indexes, that may change.

Historically, at the beginning of the year and late last year, they were seeing higher valuations.

Class we saw yahoo!

Skyrocket after it reported its numbers.

A big part was ali baba.

What happens when ali baba is spun off and it is a separate company?

The whole point of ali baba in the u.s. is so that yahoo!

Can sell its stake.

It will not sell the whole thing off the bat, but they will sell about a 12% stake in the ipo, probably 11% of that will be for yahoo!'s exit.

It is a challenge to resume her inner to turn the company around without the big rather backing.

It certainly will be a challenge and we will continue to watch the markets.

Thank you, so much.

All right.

Moving and kicking.

At this hour, the credit suisse ceo, the credit suisse posted

This text has been automatically generated. It may not be 100% accurate.


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