Nothing gets overhyped as much as a company going public. And like many investors learn the hard way, blindly buying into the hype is a good way to go broke fast.
Just look at what happened with Facebook’s (Nasdaq: FB) IPO. People were so eager to invest in the social media company that they ignored the warning signs. By the time Facebook reported earnings for the first time as a public company, shares had cratered over 37% from its opening day high.
Don’t fall for IPO hype. Instead, follow our coverage on IPOs as we spot newly public companies with solid, sustainable fundamentals.
Prepare to be stupefied… Over the course of 1,238 trading days – from January 1, 2009 to December 31, 2013 – Virtu Financial had one day in which it lost money. One! Let that sink in for a moment… 1,237…