[wp381640]

You're making the mistake of valuing this IPO on its fundamentals while currently the market is largely being driven by liquidity.

It's really hard to have a failed tech IPO at the moment with all the demand which is why they're all rushing the gates.

It'll take a large, broad recession to bring tech stocks back down

I'd expect Asana, Unity, Sumo and Snowflake to all pop and stay up in the short term

I'd add AirBNB to the list considering booking is only down 10% off it's high and Expedia is up 100%+ from it's covid-low

[switch11]

This is a Brilliant comment

I was wondering who was going to hit the nail on the head

LIQUIDITY

-> looking for a return, ANY RETURN

That's why all large tech stocks are booming

that's why Tesla has 1,000 P/E

Anywhere that all this Feb Printing Press Money can park itself, that might be safe and/or give return

IT WILL RUSH TO

Anyone who can IPO, should IPO

[jolux]

We are currently in a large, broad recession. Unemployment is at 10%.

[adventured]

We were. It's doubtful that we still are. GDP growth has clearly popped back above negative for the third quarter, which will break the two quarters technical requirement. Most economic readings right now are strong, from manufacturing to retail to job creation.

It's more like we're in the equivalent of the first or second inning of the post great recession recovery now.

This recession isn't broad, it's unusual in its disjointed hit. It's primarily hammering lower income labor and specific types of small businesses. 40% of low income households lost jobs just in the March and April shutdown. That's where most of the job damage was at:

CNBC "Households with income below $40,000 were hit hardest by the coronavirus pandemic. Almost 40% were laid off or furloughed by early April, according to the Federal Reserve."

Jobs in the top 2/3 have largely been unscathed, which is why the broad housing market continues humming along in most regards (whereas housing got smashed in every way in the great recession). It's also why hiring has been so ferocious and unemployment has recovered dramatically faster than during the great recession; it's specifically because the context isn't all encompassing. The great recession didn't spare the middle class and higher income groups nearly so much, it was a very broad recession.

Which all makes sense, this wasn't a normal recession, it was a temporary forced shutdown of some parts of the economy due to a pandemic (further, not all of the economy was shuttered during the second quarter, the majority of the economy kept functioning throughout the pandemic).

[jolux]

A thousand people are dying of COVID-19 every day, it’s not a normal recession, but pretending it’s over is silly. The markets have likely priced in a second stimulus which at this point probably depends on a different president.

[james-mcelwain]

Ignoring the importance of the bottom 1/3rd for consumer spending.

[james-mcelwain]

There's no alternative to equities. These prices could continue to go up for years, even if the bottom totally falls out.

[shostack]

Where are you getting your unemployment numbers from?

[jolux]

BLS numbers for July: https://www.bls.gov/charts/employment-situation/civilian-une...