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Valuations of tech companies at IPO usually hover ~6x revenue
This year they're up to 24
perhaps it's because these companies are four times better?
https://www.wsj.com/articles/sizzling-tech-ipo-market-leaves-investors-befuddled-11607868001?mod=hp_lead_pos4
This year they're up to 24
perhaps it's because these companies are four times better?
https://www.wsj.com/articles/sizzling-tech-ipo-market-leaves-investors-befuddled-11607868001?mod=hp_lead_pos4
-Airbnb is worth the combination of Hilton + Marriott + Hyatt
-DoorDash is ~ worth the KFC/Taco Bell/Pizza Hut x 2
-Snowflake is worth more than Goldman Sachs
anyway read our story on the frenzy https://www.wsj.com/articles/sizzling-tech-ipo-market-leaves-investors-befuddled-11607868001
-DoorDash is ~ worth the KFC/Taco Bell/Pizza Hut x 2
-Snowflake is worth more than Goldman Sachs
anyway read our story on the frenzy https://www.wsj.com/articles/sizzling-tech-ipo-market-leaves-investors-befuddled-11607868001
One interesting note in the above chart ...
Dotcom revenue multiple were in the 50s, which obviously didn't end well
BUT those companies were young with very little revenue
Companies today are old (13 yrs on avg) and have lots of revenue. So the 24x is quite something
Dotcom revenue multiple were in the 50s, which obviously didn't end well
BUT those companies were young with very little revenue
Companies today are old (13 yrs on avg) and have lots of revenue. So the 24x is quite something
err, they approached 50.
Companies IPOing in 99/2000 were 4-5 yrs old (median)
more fun stats here https://site.warrington.ufl.edu/ritter/ipo-data/
Companies IPOing in 99/2000 were 4-5 yrs old (median)
more fun stats here https://site.warrington.ufl.edu/ritter/ipo-data/
and also interest rates of course are MUCH lower now than dotcom. but not MUCH lower this year than the past decade
h/t @drorpoleg
h/t @drorpoleg
ALSO, the hot IPO market is not confined to just buzzy companies everyone has heard of
Snowflake (a cloud software something something) has a multiple of over 200x revenue and is worth >$100 billion
Palantir is over 50x
Facebook (still fast growing!) is ~10
Snowflake (a cloud software something something) has a multiple of over 200x revenue and is worth >$100 billion
Palantir is over 50x
Facebook (still fast growing!) is ~10
Some fun history from the 1999 version of this story in WSJ
"Still, even some enthusiasts about fast-growing companies doubt that such high price-to-sales ratios can be justified." https://www.wsj.com/articles/SB943568298105617795
"Still, even some enthusiasts about fast-growing companies doubt that such high price-to-sales ratios can be justified." https://www.wsj.com/articles/SB943568298105617795
