Three highly anticipated initial public offerings that came to market this past week raised investor hopes that a nearly two-year-long drought in IPOs might finally be coming to an end.
In fact, the Renaissance IPO ETF that tracks aftermarket trading in recent IPOs picked up heading into Arm's offering, but fell 2.5% on Thursday and is down nearly 5% this month.
Market barometer IPOs are a barometer of market confidence as investors bet on the hope that they are snatching up companies with strong growth potential, said Truist Advisory Service's chief market strategist Keith Lerner.
The underwhelming performance of recent IPOs is just another sign that the choppy market waters are likely to continue, he added.
From that perspective, the recent IPOs aren't necessarily a sign of market failure, according to Sarhan.
Persons:
Adam Sarhan, —, Instacart, Keith Lerner, Lerner, Sarhan, Michael Bloom
Organizations:
Investments, ARM, Arm Holdings, Klaviyo, CART, Facebook
Locations:
IPOs, Arm's, British