ChartBrief #25 IPOs With Negative Earnings

2. Proportion of IPOs by sectors
The composition of IPOs by sectors is also quite different, notably the dot com boom was primarily technology companies.  The 2014-15 period saw a surge in Biotech IPOs (which understandably often go to market with little in the way of earnings as the capital raise is often an essential step for the company to commercialize and further R&D).  But it does show just how frothy the Biotech sector got – not quite dot-com territory, but many parallels.

Bottom Line:The surge in unprofitable IPOs came on lower volumes, but was driven primarily by the Biotech sector – highlighting the frothiness that had characterized that sector.


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Top Down Charts
Topdown Charts: "chart driven macro insights" Based in Queenstown, New Zealand, Topdown Charts brings you independent research and analysis on global macro themes and trends. Topdown Charts covers multiple economies, markets, and asset classes with a distinct chart-driven focus. We are not bound by technical or fundamental dogma, and instead look to leverage any relevant factor to capture the theme. As such, here you will find some posts that are purely technical strategy, some that just cover economics and data, and some posts that use multiple inputs to tell the story and identify the opportunities. Callum Thomas Head of Research Callum is the founder of Topdown Charts. He previously worked in investment strategy and asset allocation at AMP Capital in the Multi-Asset division. Callum has a passion for global macro investing and has developed strong research and analytical expertise across economies and asset classes. Callum's approach is to utilise a blend of factors to inform the macro view.