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Domo dives 13% on day 2: what's causing all this volatility?

Data analytics provider Domo popped 30% on Friday , flying in the face of the many financial journalists who derided its egregious spending habits and the CEO's voting control. They may have the last laugh: its stock sunk 13% on Monday .

What's causing the unusually volatile early trading?

All tech IPOs have been hot

Domo ( DOMO ) may have initially benefited from a trend we noted in our newly-released IPO Quarterly Review : the average tech IPO from the 2Q18 is up 60% from its offer price. 17 of the quarter's 18 tech IPOs finished in positive territory. Many IPO investors will see that trend and buy all tech IPOs, without paying too much attention to what's under the covers.

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The article Domo dives 13% on day 2: what's causing all this volatility? originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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