frenzyThe eye-popping stock market debuts of Airbnb and DoorDash last week have led to the delay of at least one eagerly awaited I.P.O., as executives are taken aback by the strength of the tech stock craze. The gaming company Roblox has pushed back its stock offering until next year, The Times’s Kellen Browning writes. The median valuation of tech I.P.O.s this year is 24 times trailing revenue, the University of Florida professor Jay Ritter told The Wall Street Journal. That measure for the Nasdaq Composite Index is currently 4.3 times, while for tech I.P.O.s for most of the 2010s it averaged about six times. Retail investors are a major factor in the frenzy, and it’s not clear how long they will continue to pay steep prices for a piece of high-growth tech companies.

Source: New York Times December 14, 2020 12:33 UTC