Steve Sosnick, Interactive Brokers’ chief strategist, discusses the market’s willingness to buy the initial public offerings of unicorns, or start-ups which carry valuations of more than $1 billion.
A numerous round of financing led to the initial offerings of Uber (UBER) and Lyft (LYFT), as well as WeWork, that don’t make money. As a result, investors have turned more discerning about unicorns that don’t have robust business model.
Sosnick explains the changing dynamics of the IPO market.
Photo Credit: Wonderlane via Flickr Creative Commons
