The Unicorn Bubble is Imploding



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ORIGINAL POST

Posted by Ed 42 days ago
Everyone – including infamously me – has been trying to pinpoint the exact moment when the magnificent startup-unicorn-bubble broke, and I mean not just broke but imploded spectacularly. All of the biggest upcoming IPOs were cancelled.
 
All the biggest ones that got out the IPO window this year crashed and burned. And the $47-billion WeWork unicorn is now awaiting dismemberment or a bailout from Softbank after its IPO hopes were annihilated by a catastrophic event, called “market conditions,” when some sort of rationality starts to reinsert itself in tiny baby steps into the market.
 

WeWork is the current favorite for pinpointing when, who, and what blew up the IPO market that is so crucial for the startup-unicorn scheme to function and to come to its completion. Former Nasdaq CEO Robert Greifeld explained in an article published on CNBC this morning:
 

WeWork’s aborted IPO may come to mark the end of the current “unicorn” bubble the way the scuttled merger between Yahoo and eBay signaled the start of the dotcom crash in 2000.
 

Having become CEO of Nasdaq in 2003, I saw up close the damage caused by the growth-over-profits philosophy in that earlier era, and WeWork’s spectacular fall – from the year’s most anticipated IPO to a company with a speculative-level credit rating that may run out of funds within a year – rings many bells.
 
 
https://wolfstreet.com/2019/10/08/when-was-peak-insanity-of-the-unicorn-startup-bubble-thats-now-imploding/ 

COMMENTS

Ed 42 days ago
https://hongkong.asiaxpat.com/Utility/GetImage.ashx?ImageID=948953d8-f3c9-444b-9f38-652a59fe3698&refreshStamp=0
 
https://hongkong.asiaxpat.com/Utility/GetImage.ashx?ImageID=cf5cb555-98ca-4dfe-891b-c2c251a0b958&refreshStamp=0
 
 
 
  • Peloton: -22% from its IPO price on September 26
  • Dynatrace: -30% from its peak
  • Slack Technologies: -39% from its first-day “pop”
  • Crowdstrike: -35% from its peak in August
  • Chewy: -37% from its peak three days after the IPO in June
  • Pinterest: -37% from its peak in August
  • Zoom Video: -31% from its peak in June
  • PagerDuty: -57% from its peak in June.

Ed 42 days ago
https://hongkong.asiaxpat.com/Utility/GetImage.ashx?ImageID=23a3b5b3-5e30-449b-bcb3-73de3440b2ae&refreshStamp=0


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