1 IPO Stock to Buy Hand Over Fist and 1 to Avoid Like the Plague
Getting in on a hot IPO could be a great opportunity for investors to buy shares in stellar growth stocks before market forces push the share price higher. But not every IPO pans out for shareholders. Sometimes the stock will sink below its initial pricing.
In that case, the stock could be a screaming buy, giving investors an opportunity to buy shares at an even better price. Or it could be a major warning signal for investors that the stock was overvalued at its IPO and the shares could have further to fall.
Two recent IPO stocks have fallen below their initial price: Instacart (NASDAQ: CART) and Arm Holdings (NASDAQ: ARM). But only one is worth buying at today's price, while the other still looks overvalued.
Source Fool.com