Lessons from Goggle IPO (debacle)

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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.
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    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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