The finance world was abuzz today about Twitter’s much ballyhooed IPO, which quickly rose from the starting price of $26 to $45, good for 73% over the listing price. It looked all too easy, and one of the bloggers at Stocktwits (did they get an allocation of the IPO – they sure should have) dug up a nice chart from the folks at Mashable/Statista showing how much $1,000 invested in tech giants Amazon, Google, eBay, Yahoo, LinkedIn, and Facebook at their IPO price would be worth today… $1,000 worth of Amazon would be worth a staggering $239,000 in just over 15 years, all the way down to $1,000 in Facebook now worth just $1,269.
But… not being allowed to cherry pick trades like this in our business (although it would surely be interesting to show the compound growth of $1,000 invested in the largest growth CTAs since 1997 for comparison – maybe next week) , we thought an alternate view would be of interest, showing the current value of 6 other tech IPOs.
Turns out investing in tech IPOs is no sure fire bet…
And Statista’s for comparison.. (and to be fair, the author did say: Please note that this chart involves a fair bit of cherry-picking and is in no way meant to uncritically endorse internet IPOs. For every successful tech IPO, one can find a couple of failed ones)
Chart Courtesy: Stocktwits
(Disclaimer: Past performance is not necessarily indicative of future results)