This is one of my favorite research charts describing 2021 (and, in fact, a decade-long trend).
Investors have never really cared less whether an IPO makes money.
In line with the spiking number of SPACs (mostly representing unprofitable companies), about 75% of IPOs last year were for companies that don’t make any money (which was slightly down from 80% unprofitable stock-market debuts in 2020).
What does this mean?
- Maybe not all stock buyers are the short-termists they are sometimes made to be?
- Maybe the ongoing tech hype produces more and more companies telling a „future-profit story“ that will soon fall apart?
Who knows. In any case, IPOs are different now.