2011 in Review – An IPO (Trick) Question
January 5th, 2012
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Think of one of those matching questions common on tests when you were younger. In this case, it would go something like this.
Below is a list of tech company’s who IPO’d in 2011. Can you plug in the appropriate stock performance?
| Company | 2011 Stock Performance |
| Angie’s List | ??? |
| Bankrate | ??? |
| Groupon | ??? |
| ??? | |
| Zillow | ??? |
| Zynga | ??? |
The choices are:
-0.98%
-37.15%
+40.16%
-0.95%
-20.99%
-33.15%
What is your guess? Notice. Two stocks were relatively flat. Three lost more than 20%, with the average being closer to 30%. Only one was positive and by a lot.
Is your guess something like this?
| Company | 2011 Stock Performance |
| Angie’s List | -20.99% |
| Bankrate | -0.95% |
| Groupon | -33.15% |
| +40.16% | |
| Zillow | -37.15% |
| Zynga | -0.98% |
What if we said the actual answer looked like this?
| Company | 2011 Stock Performance |
| Angie’s List | -37.15% |
| Bankrate | 40.16% |
| Groupon | -20.99% |
| -33.15% | |
| Zillow | -0.98% |
| Zynga | -0.95% |
That’s right. Of all the tech IPO’s including some of the most anticipated and hyped companies, only one had a win, and only one looked like this:
Bankrate (RATE).
