A lesson in buying hyped-up IPOs

[RiskHedge Roundup] Last August, we told you to avoid one of the year’s hottest IPOs… Robinhood (HOOD)—the stock-buying app loved by young investors—surged +124% within its first five trading days. Fear of missing out caused many investors to buy shares near the top. But in our August 7 Roundup, we told you NOT to buy into the hype. Eight months later, the stock is down -81%. History shows us the most popular IPOs often fail to live up to the hype. Our IPO expert, Justin Spittler, explains: Uber (UBER) and Lyft (LYFT) were two monster IPOs that disappointed investors. Both stocks crashed 35%+ during their first six months of trading. Even Meta’s (FB) IPO was a flop. It plunged 54% in its first five months as a publicly traded company before bottoming out. This happens all the time. When there’s a ton of hype around an IPO, that enthusiasm gets “priced in.” And most of the upside is captured before retail investors like us even have a chance to buy it. The lesson? Next time there’s an IPO on the horizon that everyone’s talking about, remember Justin’s words and practice caution. In case you missed it… Elon Musk took a huge 9% stake in Twitter—[click here to read our analysts’ opinions on what to do with TWTR stock](. On Tuesday, Justin highlighted [four industries that are worth investing in right now](. Has crypto’s volatility prevented you from investing? [Read why Chief Analyst Stephen McBride sees crypto’s volatility as a pro, not a con](. Chris Reilly Executive Editor, RiskHedge This email was sent to {EMAIL} as part of your subscription to RiskHedge Report. To opt-out, please visit the [email preferences page](. [READ IMPORTANT DISCLOSURES HERE.]( YOUR USE OF THESE MATERIALS IS SUBJECT TO THE TERMS OF THESE DISCLOSURES. Copyright © 2022 RiskHedge. All Rights Reserved RiskHedge | PO Box 1423 | Stowe, VT 05672