If you scroll all the way back to when it IPO'd, Microsoft went up 280,000% from 1986 – 2022. To gain 280,000% they must have IPO'd for a about $600million. Now we have companies that don't even make profit IPO'ing for tens of billions.
It seems now that companies go public at way over their valuations. One stock I want to buy is Palantir but even now it's still valued at $15billion… If they IPO'd at a similar valuation to Microsoft they should be a penny stock with a market cap of about $100million.
So to answer my question, why are companies IPO'ing for so much now compared to in the past? Same thing for Amazon (110,000%), Apple (100,000%) and others. They all started out as penny stocks but now similar companies in the making at IPO'ing for tens of billions…
Imagine if Palantir went up 100,000% from IPO it would be valued at a laughable $15trillion. If Palantir IPO'd in 1980 it would probably have a valuation of $50million.
I feel like our generation is being robbed of investment opportunities because everyone and their grandma is IPO'ing at wildly inflated prices.
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