Starting to See More IPO and Merger & Acquisition Activity

Initial Public Offerings are an indicator of market health. Well, here is some good news.  More venture-backed companies have had IPOs this year than there were in the last two years combined.

The bad news is that the market has not been kind to these newly public companies. Scott Austin at the WSJ notes that only six of this year's venture backed IPOs are above their first day of trading.

For example, a recent IPO with a lot of "buzz" was Tesla.  The enthusiasm generated for Tesla's stock during its first day on the market has waned. After reaching almost $30, Tesla faded fast. It's back down to $17.40.  Here is the chart.

Nonetheless, I'm starting to see more articles about M&A activity too.  I take the increase in IPO and M&A activity as a positive economic sign.  What about you?

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