Gavin Baker
+ Your AuthorsArchive @GavinSBaker Managing Partner & CIO, Atreides Management LP. Formerly Fidelity OTC Fund. No investment advice, views my own. Dec. 13, 2020 1 min read

1) Extreme day 1 IPO pops and the ensuing market price reality that generally sets in post lockup expiration hurts employee morale, engagement, retention and recruiting.

LinkedIn, Snap, Twitter all suffered from their day 1 IPO pops.

Wise to delay. 

2) No one anticipated what happened last week. Chesky’s face said at all. VCs, executives, banks - everyone was surprised.

Even allowing for today’s market, the outcomes were outside of most confidence intervals.

This is a *very* unusual market.

3) Must be so strange to work so hard, build an amazing business, have an incredible IPO that is the outcome of long years of hard work and then realize your company and employees are in the grip of a speculative mania.

Feel both happiness and sympathy for these founders.

4) Really is beginning to feel like 1999 in pockets of the market that extend beyond EV SPACs which are the height of absurdity, but there are also so many reasonably valued, high quality stocks with attractive risk/rewards.

It is a much *narrower* mania than 1999.

You can follow @GavinSBaker.


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