Over 80% Of 2017 IPOs Had 'Negative' Earnings – Most Since Dot-Com Peak

screen shot    at    pm

2017 was a banner year for many things – record low volatility, record high complacency, and record amounts of money printed by the world’s biggest central banks, among many others.

All of which heralded the belief in the super-human, ‘can-do-no-wrong’ venture capitalist… and of course the ‘exit’ cash-out moment.

screen shot    at    pm

108 operating companies went public in the U.S. in 2017 with the average first day return a healthy 15.0% – well above the average 12.9% bump seen since the start of the 21st century.

But of most note in years to come, we suspect, is the fact that over 80% of IPOs in 2017 had negative earnings… the most since the peak of the dot-com bubble in 1999/2000…

Over 80% Of 2017 IPOs Had 'Negative' Earnings - Most Since Dot-Com Peak

Source: Jay Ritter, University of Florida

Put a slightly different way, 2017 was the biggest “money for nothing” year since Pets.com… consider that the next time you’re told to buy the dip. Remember the only reason “the water is warm” is because it has been ‘chummed’ by the the last greater fool ready for the professional sharks to hand their ‘risk’ to…

b MpjoE
READ
Over 80% Of 2017 IPOs Had 'Negative' Earnings – Most Since Dot-Com Peak On ZH

Author: HEDGE

Hedge Accordingly was founded ahead of the global financial crisis in January of 2008, with the goal of providing our readers our unique take on latest news on stocks & WallSt. Hedge Accordingly produces both original, and aggregated Wallst news content from top publishers around the world. We curate aggregated content covering the latest news on politics, stocks, wall street, and the tech industry. Click Here for Free stock charting, quotes and a bitcoin, forex and currency exchange. Learn More About Hedge