Article: Why Technology Ipos Are Better Off Loss-making

Discussion in 'General Trading Discussion' started by longtermbull, Feb 6, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    Experts predict a flurry of IPOs over the next few months as the US market hits new highs. The latest to announce plans to list on the stock market is communications darling Snapchat which has a growing fan base and a rumoured $20 billion valuation. Like so many high-value/loss-making technology companies of years gone by it has polarised views. So, why are technology IPOs better off loss-making when they launch on the stock market?

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