Eugenio Catone @CatoneEugenio: "If you’re planning to invest..."

Italy

If you’re planning to invest in this year’s mega IPOs—like SpaceX, Anthropic, and OpenAI—you’ll definitely want to check out this chart shared by Josh Schafer on X. As you can see, a ton of companies hit massive drawdowns during their first year on the public market. This list includes some of the biggest names out there, and on average, they took a 55% hit—even though there was absolutely nothing wrong with their underlying business. I mean, we're talking about companies like Airbnb, Facebook, Alibaba, and Spotify. The reason behind these post-IPO crashes is actually pretty straightforward: whoever is taking the company public has every incentive to push for the highest valuation possible. That way, investment bankers pocket fatter fees, and the company raises more capital. But for retail investors, this setup basically forces them to buy in way above fair value, leading to a nasty drop later on. At the end of the day, IPOs are also a way for insiders to cash out, and it’s usually the retail investor who ends up holding the bag in the short-term. $SPX500 $NSDQ100 $DJ30 $Italy40 $UK100

Not investment advice. The author may have financial interests in the mentioned instruments.