Saudi Press

Saudi Arabia and the world
Thursday, Oct 02, 2025

What's Next For 2019's IPO Class?

What's Next For 2019's IPO Class?

The IPOs of 2019 like Uber UBER, Lyft LYFT, and Levi Strauss LEVI may not be out of the woods yet. The unicorn craze has crashed hard after many of this year’s market debuts have struggled to make any gains thus far. Highly anticipated IPOs like ridesharing companies Lyft and Uber are down 51.9% and 30.4%, respectively.

Furthermore, IPO filing mishaps like WeWork, who unraveled before their public offering, have made investors wary about the so called “unicorns” of 2019. As these struggling stocks continue through the end of their first calendar year, they inch closer to the end of lock-up periods as well, which could send stock prices downwards.

More Turbulent Times Ahead?

Lock-up periods are expiring for this year’s IPO class, which analysts say could introduce a new layer of pressure for young companies. Founders, employees, and some early private investors who bought in before a company goes public are usually restricted from selling for between 90 and 180 days. Uber, Pinterest PINS, and others are approaching that expiration date between mid-October and the end of the year.

The Bear Traps Report says roughly $31 billion worth of public company shares are unlocking from now until the end of this year. A sell off frenzy would be detrimental to the already struggling young companies and could also discourage other private companies from going public. If the early investors decide to sell simultaneously around the end of the lock-up period, then they would flood the market with shares, which would in turn weigh on stock prices.

DataTrek’s Nick Colas commented, “Venture capitalists are going to sell into lock ups because they have a huge investment in the assets and because their cost basis is so low — they still have a big gain even if the IPO hasn’t performed.” Essentially, venture capitalists just want to get their money back and move on to the next thing.

IPOs also face pressure from the employees who hold stock options, as they might hold a majority of their personal wealth in stock which would motivate them to sell. These IPOs who were valued as the next big thing by the private markets came under speculation once public market analysts did their due diligence. This was the case for WeWork as well as Uber who saw its shares fall over 7% in its market debut.

Is There Any Light at the End of the Tunnel?

Not all of this year’s IPOs have gone awry. Pinterest, Datadog DDOG, and Beyond Meat BYND have all made solid gains since their respective IPOs. One way companies are trying to avoid the lock-up issue is through direct listings.

Bill Gurley, partner at venture firm Benchmark, gathered hundreds of CEOs, CFOs, venture capitalists, and fund managers to an invite only event called “Direct Listings: A Simpler and Superior Alternative to the IPO.” This alternative allows buyers and sellers to meet up on the first day of trading and avoid the lock-in periods.

There were a lot of different factors that contributed to the less than spectacular performance from the IPO class of 2019. Macroeconomic uncertainty has forced investors to look for safe haven stocks rather than bet on startups who have yet to prove not only their profitability but durability as well.

The uncertainty surrounding whether or not these early investors will sell or keep their shares causes further volatility. Supporters of the direct listing method believe that the alternative helps a company find its financial equilibrium faster and avoids sell off frenzies that accompany uncertainty.

Airbnb, who is set to go public as soon as the first half of 2020, might do so via direct listing, which can potentially help the company find its footing in the public market. The potential emergence of direct listings could spell bad news for banks, as they collect hefty fees from companies for underwriting IPOs. However, time will tell how private market companies choose to conduct their public listings.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×