- Some Consumer Tech Companies Follow Facebook, Google But Failure Found
- Uber, Lyft and some companies have had disappointing results after heavy IPO
International Magazine Time has analyzed changes in some areas in 2019. Look at the significant movement going on in the US and explain some popular words. They called 2019 the year of unicorn companies in the US (technology companies with an IPO of over $1 billion.), But by the end of the year, IPOs of most consumer tech companies, except Pinterest, have proved disappointing for investors. Unicorns do not make profits. They are unlikely to do so as well.
In consumer technology, most hopes were from Uber and Lyft. A little behind them was the real estate company WeWork. She has never been a real tech company. Six months after its entry into the stock market, Uber and Lyft’s share price dropped one-third from its initial price. WeWork postponed its IPO. They have appointed two people in place of their CEO. The former CEO of WeWork dreamed of building buildings on Mars or building houses for the world’s orphans. Many argue that the IPO of consumer technology companies has always been the same. Google, Facebook have also suffered turmoil in the stock market. Remember that both companies were making profits when they came in the stock market.
Now the big wave of a successful IPO will not be a unicorn
The success of Google, Facebook, and other companies has given future tech companies the mantra to build a huge user base over profits. They made the impression that if they found the users, then the profits would come automatically. Wall Street had previously relied on this philosophy. It was later revealed that the stock market believes in profits. Consumer Tech has not died. Companies like Uber and Lyft will keep coming. But now the big wave of successful IPOs will not be unicorns.
(Powell is Google’s former communications chief.)
Not all unicorn companies fly high. Many companies have lost their market value after entering the stock market this year. The price of WeWork has dropped after trying to come to IPO. He had declared his own value.
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