Looking Back at Hot Tech IPOs From a Decade Ago

With the stock market turning firmly negative in recent months, it's important to try putting things in historical context. Investors have seen shares of many companies get cut in half or more. It happens from time to time. Some deserved it. Others have great businesses in rapidly expanding industries.

Software-as-a-Service (SaaS) stocks are an example. Although valuations are lower, the businesses continue to perform well. That's why I thought it would be useful to look back a decade at former highflying SaaS stocks -- first, to see if they also experienced a significant decline in the price-to-sales (P/S) ratio, and second, to see if their growth was able to overcome the valuation crunch and make them good investments over the long term.

Here's what I found.

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Source Fool.com