Peer-to-Peer, Gig and On-Demand Economies Message Board

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Technology Stocks : Peer-to-Peer, Gig and On-Demand Economies

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To: Glenn Petersen who wrote (873)	5/26/2022 8:26:01 PM
From: Sun Tzu	of 910

Perhaps I am too cynical, but I don't see companies as preferring to lower their valuation rather than issue stocks to their employees (out concern for the employees and the shareholders, of course <g>). What I think happened is that the market has tanked and they need money to survive. VC funds have dried up and they can't get a better valuation from them. So everyone, including the VCs, are cutting their losses and doing an IPO at a price that the market can take. Many of the no earnings stocks have dropped 65% - 80% off their IPO. So going from 40 to 24 is still better than that and allows the VC and the execs to cash out before it drops even more or they have to remain private for a few more years.

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