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Companies such as Airbnb are better established than those that soared in the bubble two decades ago. Courtesy of Airbnb
Are we having another tech-stock bubble? It’s not hard to see why people are worried about that possibility.
Last week’s initial public offerings for DoorDash (ticker: DASH), Airbnb (ABNB) and C3.ai (AI) appeared positively out of control, with huge post-listing gains for all three. The sell-off that has followed over the past few trading days smacks of buyers’ remorse.
There are huge differences, though, between today’s market and the internet-bubble years of two decades ago. In 1999, for instance, the top 10 first-day pops were all more than 350%. And many of those companies had shaky foundations.