Lessons from Goggle IPO (debacle)

1 Comment

TechCentralStation has an interesting essay on Google’s messy IPO process. It offers really good lessons for tech companies trying to do an IPO. Here are three points they are making:

  • First of all, there’s never a “good time” to go public.
  • Moreover, tech companies — regardless of size or market clout — can not afford to turn their backs on Wall Street.
  • Finally, tech stocks are no longer ‘story stocks.’ The experience of Google shows that investors are keeping their eyes on metrics like earnings, revenue, margins and market share.
  • 1 Comment

    Damian

    I don’t agree with the first point – there are definitely better times to go public than others. For instance, in a big bull run, many companies that were marginally able to go public can get out. I think the point should be: if you are a solid, growing business with revenues that justify going public, then it probably doesn’t matter when you go public.

    Great little story in the WSJ today, btw: Seth Goldstein of Majestic Research was able to successfully bid for: “100 shares at $10 each, 10 shares for $75 each, and five shares for $5 each”….

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