Snapchat's IPO will falter, and trigger a crash or economic malaise


I'm light on specifics here, because why should one pre-IPO tech stock's failure lead to a broader failure? For example, a weak IPO for Snapchat shouldn't affect Apple's stock, which is already beat. 

On the other hand, my sense about the economy is that it's like a giant about to sneeze. Whether it was the commodities crash, or Brexit, or Trump, it feels like the conditions are set where it just needs a trigger. It's been 8.5 years since the last crash, which is long in terms of inter-crash periods.

A lot is "invested" in the success of the Snap IPO, since a huge number of so-called "unicorns" (pre-IPO billion-dollar companies) like Uber are banking on a good IPO market to bring out cash for their investors.

One path, I could see, is that a Snap failure forces all the investors for these other IPOs to do fire sales, which sours the start-up culture. How it cascades to other industries, I don't know. Maybe the headline is that all the job growth was in tech, so if that slows down, that sours the overall economy. Mix in some botched trade policies, and boom.

I don't know. It's just a feeling
Snapchat's IPO will falter, and trigger a crash or economic malaise Snapchat's IPO will falter, and trigger a crash or economic malaise Reviewed by Kanthala Raghu on March 13, 2017 Rating: 5

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