Tech IPOs may be showing signs of life.
Stocks like Huya (HUYA), Pivotal Software (PVTL) and Iqiyi (IQ) rallied hard in May and early June after their initial public offerings (IPOs), only to pull back sharply. But now they’re having positive weeks. Does than mean they’ve stabilized and are poised for more upside?
They mostly fall within two camps under the bigger tech umbrella:
- Cloud computing: PVTL, Docusign (DOCU) and Smartsheet (SMAR), Dropbox (DBX) and ZScaler (ZS) focus on cloud computing.
- Chinese tech (focused on digital entertainment): HUYA, IQ and Bilibili (BILI).
One other name stands out even more because it never really pulled back: Spotify (SPOT). In fact, the streaming-music company is making a new all-time today — just one session after closing at a record price.
In conclusion, this isn’t a recommendation and everyone needs to do their own homework. But sentiment has turned more positive toward IPOs and now investors may be buying some pullbacks.