Please ensure Javascript is enabled for purposes of website accessibility

3 Red Flags: A Cautionary Tale About IPOs

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

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

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
322%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.