Three recently public technology companies are surging today, potentially indicating fresh analyst and investor enthusiasm for tech shares. GoPro is up more than 21% at the time of writing, continuing a massive bull run since its recent debut. Its shares are nearing the $50 mark. The company IPO’d at $24 per share, meaning that it has more than doubled its value since going public.
Arista Networks and JD.co also saw strong gains today, with the former rising just over 15% at the time of writing, and JD.com rising more than 4%.
The two firms both picked up a number of new ratings today, from analysts working at banks that underwrote their offerings, as their requisite quiet periods expired. The new ratings were generally positive. Investors, buoyed by new share price targets, appear to have piled in. (Of course, judge ratings from underwriting banks with a generous helping of salt.)
We’re seeing the IPO climate improve, which, as we always note, could help some companies still on the bench pull the trigger.
How can we tell that we’re seeing a more receptive market? We’re seeing long-private, cash-poor companies that have lost money and aren’t growing at eye-popping rates try to make a go of it. For healthier firms that manage material profit, going public shouldn’t be much of a struggle at all. That’s what Arista’s offering appears to indicate, at least.
What’s next? Alibaba, I’d say. And given investor reception to JD.com, Alibaba could be coming to the public markets at an auspicious moment.