While we sit and wait for the Facebook IPO to get rolling tomorrow morning, I thought it would be nice to take a look at past tech IPOs and see how they have progressed or regressed since going public. This one come from Mindjet.Com and gives us a sense of how sometimes, largely hyped IPOs offer very little in the way of reward for investors after the sale.
If you are planning on investing in some Facebook shares than you might want to digest this graphic for a little while first. I think it illustrates the wide spread buyer’s remorse investors can have after falling victim to the buzz that can surround these offering. For instance, Groupon was something in great demand when the IPO was pending, but it has offered investors nothing since.
Other companies like Research in Motion and Linkedin have focused more on the shareholder’s aspect of things and have performed consistently better than they were at the time of their IPOs. So I guess the point here is, don’t get caught up in the buzz and be more focused on what you think can happen after the IPO. Does the company have the potential to create more value than it already has or will it be stagnant and struggling to find new avenues to explore?
Take a look at what Mindjet came up with:
