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.