Following Facebook’s IPO plans, S&P’s Global Markets Intelligence group looked at whether or not tech IPOs mark the high water mark for equities as well as a bubble for technology issues.
Using S&P Capital IQ data, S&P extracted the all-time top 10 U.S. IPOs in the information technology sector.
The S&P 500 Index increased after six of the 10 largest IPOs. On the other hand, the S&P 500 Index decreased following four of the 10 instances. Although the number of occurrences in this review may not be mathematically significant, S&P says “it does show a slim bias that the largest information technology IPO did not get priced at a peak in the market.”
For details see Cross-Market Commentary: Do The Biggest Technology IPOs Occur At Market Peaks?
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