In 2016, Fortune’s cover already warned about overvalued IPOs of tech unicorns. Among the examples cited were Lending Club, whose share price fell by 50% within a year of listing, and GoPro, which dropped from $94 to $0.68. SpaceX completed the largest IPO in history in June, reaching a peak of $176 on its first day of trading. Since then, its share price has declined steadily, erasing $1 trillion from its valuation. Savvy investors are advised to focus on revenue, read the prospectuses, and remain patient.
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