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7 Nov 2019

Market Metrics: US Listed Companies

IPO stands for Initial Public Offering and refers to the process of offering shares of a private company to the public in a new stock issuance to raise capital.

Seriously, what is going on with US Initial Public Offerings?

Since 2017, the aggregate capital raising (IPO) of unprofitable private companies has exceeded that of profitable private companies coming to market and by a significant margin.

This is not normal when you look back over the past two decades and is most definitely being driven by technology companies coming to market with the promises of future rivers of gold.

Click for chart.

Consider, if a company is not making profit today, how does it make a profit in the future because no way that every one of these IPO’s becomes an Amazon???

We most defiantly live in interesting times.


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