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.
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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.
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