The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics across the investing world.
According to The Wall Street Journal, there have been no U.S. IPOs in the month after the Facebook IPO that disappointed investors. That makes some sense. Who wants to sell into a market that has a recent cloud over it?
Don't worry about the IPO market, though. There will be more, and soon.
As individual investors, we should have longer-term memories, though. Remember the lessons of Facebook: (1) Greed without analysis is a losing proposition. (2) Popularity doesn't necessarily equate to a good investment. The ability to monetize popularity matters. So does valuation. (3) Don't assume an IPO will pop on the first day just because there are some famous examples.
Anand gives more thoughts in the video below.
If there is one thing we learned from the Facebook IPO, it's this: Don’t buy the hype. Our top tech analyst, Eric Bleeker, warned investors to forget Facebook, and told them about the tech IPO they should be buying instead. If you missed his call the first time, it's not too late: This company has room to soar.