Investors are probably looking at the executives and board members and figure that it looks like a good lineup, so this must be a good deal. Zulily's co-founders come from Blue Nile (NILE), up 25% year-to-date, and Internet winner Zillow (Z) CEO Spencer Rascoff is on the board.

Despite those benefits, that doesn't change the facts that new shareholders have no voting rights, the company loses money, has significant debt and is keeping information from its shareholders with the blessing of the SEC.

Is Zulily the newest sign of the Internet IPO bubble? The stock may become a flash sale when investors realize just what they've bought.

--Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Move Over iPhone, Facebook’s Making Room for Android — Tech Roundup

Here’s Why Donald Trump Is Criticizing Apple – Tech Roundup

10 Tech-Savvy Apparel Retailers to Buy This Holiday Season

Here Are the Apparel Retailers That May Have a Bad Holiday Season

QVC Edges Closer to HSN with Zulily Purchase