Should You Invest in Tech IPOs?
NEW YORK (TheStreet) -- As capital markets activity picks up, the IPO space is sure to heat up in 2013. But is it always a good idea?
Everyone thought Facebook's (FB) IPO was going to be "the next big thing," especially for those who missed out on Google's (GOOG) IPO. Turns out, Facebook's IPO was a flop, and day one investors are still underwater on their investments.
Recent IPOs haven't fared as well as past IPOs, and perhaps that's because these technology companies are coming to public markets later in their growth stage than they have in years past. Facebook went public after being a company for eight years, and many IPOs in recent years have produced negative returns over the first 15 days of trading as markets worry over sustained growth over the long haul.
Below is an infographic of Facebook, Google, LinkedIn (LNKD) and other hot tech IPOs and how shareholders have fared over both the short- and long-term. As the results show, sometimes it pays to hold onto "the next big" for more than just a few weeks. The best example provided is Microsoft (MSFT). A $100 invested in Microsoft's 1986 IPO would be worth nearly $38,000 today, compared to just $17.13 if one had invested in Facebook.
Infographic by Maxwell Systems --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
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