In This Article:
Klarna (KLAR.PVT), StubHub, and eToro (ETTO.PVT) have reportedly decided to delay their initial public offerings (IPOs). Yahoo Finance Senior Reporter David Hollerith joins Yahoo Finance Head of News Myles Udland, Epistrophy Capital Research chief market strategist and host of "The Drill Down Podcast" Cory Johnson, and RSM chief economist Joe Brusuelas to examine the IPO market.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
You know, we saw some news today. I think we've got, what, four or five different companies have pulled their IPOs. That's been another, um, kind of area that investors were excited about when it came to the banks. And I'm just curious, you know, how you think about that as a, a signal, you know, more broadly for investor sentiment, problem for the banks specifically, and we're kind of doing this with the third straight year. IPO window will open and it feels like it just keeps getting pushed out.
And, and a big driver sometimes of bank earnings, right, is, is, is with those investment banking fees. Um, and not this year, and not this last quarter.
Um, you know, the when the market wants more stocks, it gets some IPOs. And some of them, most of them are crappy and some of them are really good. I can say crappy.
You can say crappy. Okay.
Yeah, you just did, so.
I just did twice. Uh, you said it once. So, you know, if anyone's keeping score at home, for those of you scoring at home or those of you alone. So, um, I think that, you know, where I am in Silicon Valley, IPOs matter a lot. I always thought that New Yorkers pay way too much attention to IPOs, but we don't pay enough attention in California. And IPOs really are the lifeblood of a certain part of our economy out there because it helps take startups into wealthy people. And it helps drive certain portions of the housing market, and it really changes the environment around, uh, Silicon Valley. And, and when IPOs are thriving, startups are thriving. When startups are thriving, startups are spending and all of a sudden the whole economy of Northern California changes a lot. Um, a stock that I am short, TriplePoint Ventures. It's, again, personal bias out there. I don't, you know, I personally short, but I've been following this company for a while. Is a, a sort, sort of like a, you can look at it as a proxy for a publicly traded venture capital firm. It's a firm that lends money to, to venture back startups. And this company needs a healthy IPO world in order for it to do well. As you can see from the stock price, it's been cut in half in the last year and a half. Um, and, uh, it's, it's not getting the IPO market that we'd like to have. It's not getting the IPO market that Sand Hill Road and all the big VCs would like to have. Uh, and it really does change the environment of spending of both those companies and those VCs in Sand Hill Road.
And, you know, it's interesting and, and they use portion of market. Yeah, and, and I want to run because we've got the market close coming up on a day like today when the public markets are moving this dramatically, you forget how dynamic that situation is in private markets. And we can do two hours on that, more than that, on that dynamic that that is going, you know, and you do regularly. Uh, that, that kind of enters into this, this whole picture here. So,
