Initial Public Offerings Have Plunged: Here's What We Learned from Morgan Stanley
Last year, strong financial conditions and a high appetite for risk from investors set the stage for a record year for companies going public. This year has been a different story. Market weakness has made many private companies hesitant about going public, and initial public offerings (IPOs) have plunged.
Investment bankers have felt the pain from this, and one of the top investment banks in the world, Morgan Stanley (NYSE: MS), painted a picture of how much of a drag this had on earnings on Thursday. Here's what we learned about the current state of the IPO market and what to expect moving forward.
Morgan Stanley's revenue fell $1.6 billion, or 11%, from last year, while its net income decreased $1 billion, or 32% from last year. Weakness in its investment banking segment led to the drop, where revenue fell by $1.4 billion from last year.
Source Fool.com
