The price action could be even more interesting for the broader “freshman class” of recent IPOs . Others including Palantir, DoorDash, Roblox and Upstart rallied after strong quarterly results. This follows several months of underperformance for most IPOs . Consider this chart showing improved in the Renaissance IPO Fund (IPO):
Three things may be going on. First, the Nasdaq-100 outperformed before season because everyone was focused on results from giants like Apple and Microsoft . But now they’re mostly off the radar until mid-July.
Second, is waning. That means correlations go down and stock picking goes back in style.
Third, Robinhood is expected to go public before the end of June. That could focus attention back on IPOs , including newcomers like SNOW.
In conclusion, the broader price action was already signaling a return to recent IPO stocks. Yesterday’s price action in SNOW – one of the most prominent last year – may further confirm the shift.
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