Investors seemingly can't find an initial public offering (IPO) they don't like at this point.
In October, 33 companies raised more than $12 billion, the biggest month for IPOs since prior to the financial crisis in 2007, according to
The Wall Street Journal.
Some experts say the boom is reminiscent of the technology stock rampage of the late 1990s.
Editor’s Note: 5 Reasons Stocks Will Collapse . . .
The big kahuna of IPOs for the year is the $1.75 billion offering for Twitter expected Thursday.
The sluggish economy and puny interest rates have investors reaching out on the risk curve for something that will bring strong returns, The Journal reports.
According to Dealogic, companies that went public this year have posted an average 30 percent gain in share price, compared with a 23.5 percent gain for the Standard & Poor's 500 index.
"In a slower-growth environment, the newer names are much more likely to be disruptive. Disruptive companies are more likely to grow their top line at a fast pace," Alan Gayle, senior investment strategist at RidgeWorth Investments, tells the paper.
But some financial professionals are cautious.
"When I hear intelligent investors asking me not which companies are good to invest in, but which IPOs can I get into, it scares the heck of me," Mark Lamkin, a wealth-management adviser in Louisville, Ky., tells The Journal.
As for Twitter, it raised its IPO price Monday to $23 to $25 per share from its earlier proposal of $17 to $20.
"This number is still a reasonable and doable valuation, and I don’t think it’s going to turn people off," Santosh Rao, an analyst at Greencrest Capital Management, tells Bloomberg.
"We’ve seen this before, where companies start off with a low number to get people interested, and then work higher."
Editor’s Note: 5 Reasons Stocks Will Collapse . . .
Related Stories:
© 2026 Newsmax Finance. All rights reserved.