Forget IPOs: This Stock Is a Better Buy Right Now

In September, the biggest financial story wasn't the upcoming election, presidential debates, or taxes; it was IPOs. In fact, did you know September was an all-time record for initial public offerings? Momentum isn't slowing down: New York Stock Exchange President Stacey Cunningham predicts that October will have a similar number of new issuances.

Unprofitable but high-growth tech companies such as Snowflake, Palantir, JFrog, and Unity Software rushed to market this summer, as technology company shares have surged to all-time highs amid COVID-19. That went double for the new IPOs, which quickly surged to incredibly high valuations.

Of course, paying up for an exceptional company isn't necessarily the wrong move. After all, Amazon looked quite expensive for most of its corporate life, but that hasn't stopped it from going on to make IPO investors over 2,000 times their money since its 1997 IPO. So who's to say that one of these new companies isn't the next Amazon?

Source Fool.com