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3 Red Flags: A Cautionary Tale About IPOs

By Karen Ochsenreiter and John Reeves - Apr 1, 2013 at 2:10PM

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From Pandora to Groupon to Facebook and more, last year at this time it seemed many investors were either regretting their recent buy-ins or getting ready to jump on the next big bandwagon. The Motley Fool demonstrated its own take on the matter a year ago today.

Last spring was marked by a flurry of high-profile IPOs, which have turned into wild rides for many early investors over the past year. Facebook (FB 1.41%), Zynga, and Groupon (GRPN 22.22%) all garnered unprecedented levels of hype surrounding their initial public offerings, and eager investors clamored to get in on the action. Now, it's worth asking: Was it worth it?

Today we look back on The Motley Fool's unorthodox approach to helping the world invest better in IPOs, and then size up how some of those stocks have fared since going public.

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Stocks Mentioned

Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
$183.83 (1.41%) $2.55
Groupon, Inc. Stock Quote
Groupon, Inc.
$13.97 (22.22%) $2.54
Zynga Inc. Stock Quote
Zynga Inc.
$8.18 (-2.04%) $0.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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