Extra internet points for referencing El Reg.
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So, in an ironic twist for the ages it turns out the market is rational after all!
How are the side-bets, sorry, synthetic derivatives, doing on how the stock will go?
Says an anonymous person on the Internet. I’m on to you!
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Exactly! For a bunch of reasons but mostly cos most people don’t know what they are talking about. And how can we tell, who is who?
Also I thought some of these were fun
Of course, one might argue that Uber deserves worse.
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A deep cut, but I approve
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But if $45 a share valued them at $82B, then closing over $41 a share still values them at a fantastic amount, a lot higher than the less-than-$0 that they are likely worth.
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Yup. Still insanely high. I expect they will really tank when it becomes apparent that their bet on autonomous cars coming soon has failed.
But I don’t like to think about how much damage they will have done until then.
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Closed today at $36.77 (-$4.85).
Thanks, this was a really helpful explanation for me!
I’ll add: relatively few startups ever have an IPO, we only hear about the most highly valued ones, and evaluating companies is an imprecise art. That means we’re looking at the far end of a noisy data set. In any noisy distribution, the outliers are usually going to be those where the noise and signal point in the same direction. That alone should be enough to imply that a slight drop after any IPO we hear about is normal.
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Below is an opinion piece on the Beyond Meat IPO - where it was up 163% on the day. Figured it was relavent in contemplating underwriter valuation.
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