IPO's -who benefit and who dont

[Southie]

Re: IPO’s -who benefit and who dont

@Southie

Moving on to the monologue portion of the program I did some crude back of the handkerchief calculations to estimate market cap of lead tech stocks when they came public. I used the total gains since ipo. I divided the current market cap by the gain. For example market cap of Microsoft 240 billion. It has given 30000% return or gain of 300x. So market cap at ipo $0.8 billion.

Mictosoft (1986) $1.6B
Intel (1980) $4.5B
Csco (1990)$0.8b
google (2004) $30B
Facebook (2012) $107B

The ipo year is also given based on my best guess.

The trend is obvious. Tech companies’ ipo is getting more and more closer to or greater than fair value.

Microsoft ipo was 1986. This post gives inflation adjusted n
Market cap assuming 3% inflation on average. No change in trend.