The Arm, Klaviyo, and Instacart market debuts caused a stir in financial circles over the past two weeks. Many watched the opening and ensuing share performances closely believing it may indicate the end of the tech IPO dry season of the past two years.
Performance of new tech arrivals since IPO launches
All three companies kicked their IPOs off on a high note, with trade closing above the initial pricing on the first day. Since, share prices have been seesawed somewhat, fueling renewed rounds of speculations.
It seems short sellers played a significant role in Arm Holdings’ stock, which dipped below its $51 IPO price for the first time last week. On 21 September, the Arm share price recorded its fifth consecutive session drop, and, at a stage, the price sat at $49.85. The company ended the week on a 0.62% low, equalling the $51 IPO price.
Klaviyo clung to its IPO success and closed the week on a 0.78% rise, with shares currently priced at $33.65. The company’s initial IPO pricing came in at $30.
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Instacart’s Thursday performance, which ended on a 1.8% positive after a few ups and downs since its launch, settled the mood of investors to an extent. However, it is still early for this company, and many are taking a step back to gauge values and investment potentials.
Analysts feel the losses go hand in hand with the Nasdaq drop after fears that the Federal Reserve’s monetary policy will remain restrictive for longer than anticipated. Sadly, the weaker-than-expected performances dashed some hopes that these IPOs herald good news after the IPO slump.
