More indications of temperature drop in scorching climate for technical debut
Exchange bus The fall in the imminent Compass IPO yesterday and the disappointing DailyView flotation are discussed as signs that market demand for high-growth, unprofitable tech stocks may slip. Recent news likely underscores chilling conditions. This morning, Kalatura, a technology company providing video streaming software and services, delayed its IPO. JioForMe reports that Kalpura’s “valuation demand was lower than expected.”
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ClearTips yesterday noted that Kalatura had not issued a higher IPO price range. The fact came to light as to how much new public sector markets have proved to be new technological proposals in recent months. Kalatura’s S-1 records detailed revenue growth, which at the time we thought would be more than enough to get the company an attractive initial public valuation.
It appears that Kalatura was also surprised that it is not moving towards a higher IPO price.
In another indication of how quickly the temperature could cool for the new tech plots, digital comfed firm Intermedia Cloud Communications also delayed its IPO today. In a release, CEO Michael Gould said the decision is “due to public companies challenging the current circumstances in the market, especially for technology companies.”
Challenging Current Circumstances? For IPO? For Technique IPO? This is new.
Axios reporter Dan Primack Noted this morning SPAC formation appears to be slow. Mix that there may be a delay in tomorrow and anime-to-terrible IPO news, and the market could see a somewhat faster return to more historical valuations and demand levels for unprofitable equities.
Thinking aloud: We should expect SPAC formation and deal to fall the fastest of all signals, including IPO pricing, S-1 filing speed and first day trading performance. Why? Because it’s the most exotic of the various data points we’ve seen along the way UP During the tech boom. Therefore, it should also be the most sensitive thing to the increasing financial seriousness.