Newly listed tech companies outperform older stocks
Newly listed technology companies are outperforming their larger, well established rivals in the stock market. The US technology initial public offerings have gained an average of 77% this year, with the more youthful class of stocks leading the race at a pace of 16-to-1.
Successful initial public offerings have created an exciting atmosphere in the US. According to Bloomberg's data, that return has developed from 66% since June 11, with the other new US listings averaging a 12% return.
Huya Inc. was the best performing stock, the China-based company that operates a live-streaming gaming platform has grown by 191% since its May debut. Dropbox Inc. also rose by 14%, which is a record high since its March launch, and gained as much as 20% intraday.
Bruce Cox, Senior Vice President of investments at Stifel Nicolaus & Co., suggested that traders “should roll over like a domino the first time something negative happens.” He added “the indexes are at all time highs, people are looking at the charts saying ‘let's pile in.'”
Avalra Inc., tax-management software creator, is expected to start trading today after acquiring up to $198 million from corporate giants Goldman Sachs, JP Morgan, Bank of America, JMP, KeyBanc, and Stifel. This Wednesday, its price range increased to $21 to $23 a share, up from around $19 to $21.
While youthful tech companies are winning in the stock market, there are downsides to working in tech. Working 9 to 5 can be an impossible feat for those working in the toughest of tech environments, and stress is often perceived as a mere occupational hazard in the same companies that are dominating the stock market.