Sorry, this is ludicrous. No analyst is basing their investment view on the 1 day post-IPO movements. Maybe a few months in, as an ancedote about market sentiment, but 5 years in the stock is traded totally differently, by different holders in a basically a different world. When funds make investment decisions we collate a whole bunch of random facts, some relevant, some just general interest. 1 day returns off the IPO can be filed under general interest, just like the gossip magazine articles written about the founders. At best it's attached to the fame of the stock, not the other way around - Facebook's pop is memorable not because of the pop but because of the stock.Maybe because you're from the sell side you're hearing what you want to, it often puzzles me some of the views that you guys have on the market, the role you have just doesn't actually matter that much to the market. A stock is a business, not an investment banking product. The investment banking actions over the life of the business are out-sized, but they also quickly fade to be indiscernible - Facebook would still be the same company today and worth the same amount today even if it was backdoor listed on the pink sheets at first.
No comments yet.