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Tech IPO Market Rebounds, with Less Froth

GoPro CEO Nick Woodman. Photo by Bloomberg.
GoPro CEO Nick Woodman. Photo by Bloomberg.

Remember when investors shunned tech IPOs?

This spring’s tech offering drought felt like a thing of the past when network equipment maker Arista Networks debuted last week at $43 a share, well above its $40 target. Security software maker MobileIron priced at the middle of its range and gained 22.4% to end its first day of trading at $11.02. 

Chinese Internet company JD.com’s valuation of $25.7 billion exceeded expectations when it priced last month. Trendy camera maker GoPro, whose suggested price range values the company at around $3 billion, is hoping for a lot of demand.

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Mr. Boyd says the best companies, namely Alibaba, will be mostly immune to short-term sentiment shifts. “There’s so much demand for an Alibaba IPO that it could go public in almost any market environment at any time,” he says. “It would be hard for another company to have an IPO at the same time. Alibaba is going to suck up all of the investor interest.”

This story has been updated with MobileIron's stock performance.


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Zendesk priced its offering at $9 a share, which actually valued the company a bit lower than the last VC investment round; but the move worked out. The stock has more than doubled.

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