Why Investors Should Beware Recent Tech IPOs

tech ipo

Photo credit: TechCrunch

CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com this week to talk about why we put recent Technology IPOs in the Danger Zone.

Over the past several weeks, we’ve put two recent tech IPOs in the Danger Zone (with positive results), and have seen many others crash and burn in similar ways. Investors seem to not have learned their lesson, and GoDaddy’s (GDDY) IPO on April 1 saw the company’s stock rise over 30% on the first day of trading.

The rush to cash in on easy liquidity is on. Companies are being taken public in the hopes that they’ll be able to cash in on the last of the easy money available before the Federal Reserve raises interest rates later this year.

So why shouldn’t you invest in Tech IPOs?

Listen below:

Disclosure: New Constructs staff receive no compensation to write about any specific stock, sector, or theme.

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