BigCommerce (BIGC) and Rackspace (RXT) notched the year's best and worst first-day performances on Wednesday. IPO investors continue to pay up for high-quality, high-gross margin growth, awarding e-commerce platform BigCommerce a premium multiple to its peer median. On the other hand, Rackspace is highly leveraged and has relied on acquisitions for growth.
Start a Free Trial of IPO Pro
After the first day, however, the year's other four top performers have averaged a return of -26% in aftermarket trading, whereas the year's worst first-day performers have averaged a return of 31% after day one.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
