Technology, however, is more than just social-media companies, and most tech IPOs are doing just fine. On average, tech companies since the beginning of last year are up 5%. It’s just those with a social element that are not fairing as well on average; in fact if you remove companies with any social element, the tech average jumps to 25%.
In the past few weeks, there have been sharp declines a few companies (e.g. Groupon and Zynga), but for some other tech companies, we’ve also seem strong gains (e.g. LinkedIn, Zillow). Jive Software, DemandWare, Splunk are all easily outperforming the tech average, and they are in good company. Even social review-aggregator Yelp is up 27% from its offer price, much better than its low of a positive 1% return in early June.
So if you look only at stock prices, many of the recent technology IPOs are doing fine. They’re just not the ones getting the attention.