Why GoodRx Stock Fell 13% in October
Shares of GoodRx Holdings (NASDAQ: GDRX) fell 13% in October, according to data provided by S&P Global Market Intelligence. The company only went public via an initial public offering (IPO) on Sept. 23, so October was its first full month of trading. With this context, here's a possible reason the stock dropped in October: The market is still looking for an appropriate price tag for this promising health-centric technology company.
This is why some investors choose not to invest in IPOs in the first place. In the early days, IPO stocks can be volatile as Wall Street assigns a valuation that corresponds with the business opportunity. Furthermore, in the early days, all shareholders have only held for a short time. This lack of personal history might easily persuade them to move on from a stock if it drops a little.
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Source Fool.com
