This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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 - Get Report) IPO was going to be "the next big thing," especially for those who missed out on Google's (GOOG - Get Report) 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 - Get Report) 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.

Should You Invest in Technology IPOs Infographic
Infographic by Maxwell Systems

--Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $498.87 -1.20%
FB $88.20 0.06%
GOOG $600.70 -0.92%
LNKD $180.61 0.84%
YHOO $31.64 -2.80%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs