Most IPOs -- and especially tech IPOs in the last few years -- have a tendency to swell to lofty valuations on investor hype in the first few weeks of trading on the public markets.
In this segment from Industry Focus, Motley Fool analysts Dylan Lewis and Michael Douglass take a look at some of the biggest tech IPOs from past year and see how they compare to the market average in their first year, and explain why even the biggest IPOs (like Facebook (NASDAQ: FB)) tend to fall significantly in value in their first year.
A full transcript follows the video.
Source: Fool.com