This year’s biggest tech startup initial public offering (IPO) stories couldn’t quite live up to their lofty expectations, thanks to a broader stock market contraction that underpinned tech stocks.
This year’s tech startup IPO’s, Sonos, Dropbox, Spotify and Domo all sank past their opening day numbers. Other stocks, including Zuora, Survey Monkey and Elastic, fell between 9 and 10 percent on Monday alone, according to analysis by cable business network, CNBC. Survey Monkey was off more than 36% since September 18.
Spotify (30%) and Sonos (-29%) followed with similar declines.
As poorly as tech stock IPO’s are fairing now, the overall market downturn could be bad news for next year’s class of tech startup IPOs.
“We’ll continue to see what happens in 2019, what happens on a macro basis, what the market is doing, and if the market is super volatile, people may change their plans,” said J. P. Morgan Chase vice chairman and head of technology investment banking Noah Wintroub, in a interview with CNBC.
The startups most likely to launch IPOs next year include Uber, Lyft, Slack, Airbnb and Stripe.