Did Groupon really pry open the IPO window? The results did surprise a few people, though many expected an early spike. The question that remains, however, is what this IPO means for the rest of the tech IPO space. There are plenty of candidates in the hopper, including Jive Software, Angie’s List and of course Zynga.
Watch the video above from the Washington Post to get more insights into the future of tech IPOs. What’s expected is a continuation of what happened with Groupon. Investors ‘just want to be in’ and will let their enthusiasm take over, even if they don’t know much about valuation. Eventually, the ‘air is going to come out of the tires’, though.
There is a ‘huge backlog in IPOs’, as you’ve seen on Inside IPO for a while now. Francis Gaskins, president ofIPODesktop.com, says that, because of Groupon’s IPO, ‘The IPO window is opening a lot wider and faster than people thought.
He doubts Zynga‘s ability to go public at the earlier claimed $14 bn valuation, because its quarterly profits are erratic. Rather, it will pop like Groupon, but it won’t be sustainable. The excitement around Angie’s List, he adds, is worrisome: ‘the numbers are a disaster on a quarter by quarter basis’ and ‘by now, they should have had a profitable income statement.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.