Everyone is panicking about SPCX going below IPO open price but...

Eric Seto

8d • General discussion

The truth is - IPO price is usually inflated.

This is when insider cash out and sell.

Facebook dropped below its IPO price

Uber dropped below its IPO price

Airbnb dropped below its IPO price

Tesla dropped below its IPO price

Investment bankers hype up the IPO, sells it to the public - rinse and repeat

That's why generally I do not touch IPO until they have been on the market for 1 year. (which coincidentally matches with how long NASDSAQ 100 and S&P 500 requires a stock to be public first before adding to an index)

Cheers,

Eric

Eric Seto

Chartered Professional Accountant (CPA)

Chartered Investment Manager (CIM)

Founder of 5MinInvesting.com

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Everyone is panicking about SPCX going below IPO open price but...