Don't forget to give this video a LIKE to support my channel! Also check out my video talking about my stock market predictions for 2022 here: th-cam.com/video/B3tY7mW2uEc/w-d-xo.html
I think the major takeaway is that the actual performance of a company has little to nothing to do with its stock performance during peak public offer mania. It might be a gem or a dog, but that won't be a part of the directional profile in this time period, that will only prove out over time. If you can afford the risk and are comfortable trading hype, to your point, some of these may work out. The problem is that people buy into a circus expecting a bank lobby and then don't know what to do except take a ride on the loss leader rocket. This video is a good reminder that it takes time for a stock to show how it's priced.
100% Peter! It takes time for the market to more accurately price in what it is willing to pay for a stock. That isn't going to show right away as the company usually has a lot of good will and hype after going public.
Yes totally agree! Love your take on this. There are those small cases that did outperform the market but those are far and few in between. Most of people who invest in IPOS or spacks lose money! Awesome video Jake.
So many people put their trust and follow blindly in those TH-camrs who promote SPACs, then I read all the comments from those people (many of whom paid decent money subscribing to a member course) who can’t understand why their portfolios are in the red even when the wider market is green. Listen to Jake, people, and beware of those trying to sell you something.
Videos about exciting new IPOs and SPACs get a lot of views. These TH-camrs make their money from TH-cam adsense, not their investing. 99% of "finance TH-camrs" are just clueless at best or scammers at worst. That's my take!
@@JakeBroe “I became rich investing in the stock market, and you can too. Just start a TH-cam channel and make money through TH-cam ads!” That about sums it up, it seems.
I love that you do your homework and then fill us in. I figured the bank was getting some, but 7% seems a pretty good incentive to pump the price and the hype.
It's been a VERY good year for the investment banks thanks to all these IPOs getting crazy high IPO valuations. People keep falling for it and they are raking it in, haha.
That's basically what everyone is doing. I just need to create a fake electric car company, come up with some really good promotional videos, and then I can retire a billionaire.
Dwac… There is one trick a former Goldman Sachs analyst described for trading an IPO, you buy it and you hold your finger over the sell button, at the first red candle on a five minute chart you click the sell button :)
Hey broe I’m on my way to Florida keys for vacation for few weeks going good , and my cof call option just got into the money have untill June so it’s looking good my friend , I did a call option on a t and t and just a day after was in the money now I’m up 103% this is awesome 👏
I agree with your analysis. I was one of the few who made off well with snowflake on some short trades but its very risky in the beginning with IPOs. Essentially, bet on the broad market, its safer.
I really enjoyed this. People don't often compare stocks to a benchmark. It was a nice bonus to see your quip about SDC, considering a certain TH-camr has tried pumping this stock numerous times and has failed.
Yah, Jeremy loves investing in companies that recently went IPO. I have no idea why he just wants to make things harder for himself when the past performance of IPOs is so terrible.
@@JakeBroe He's chasing the next Amazon and Netflix. He wants to claim he's the best. That's why he and many others chase companies in infancy, in my opinion.
JBro,.....it was your outstanding explanation video about small cap stocks that finally made me take the last bit of money I had in that fund,.....and roll it into the S&P 500. I would never blame or praise you for what the funds do in the future,.....I would just thank you for giving me the knowledge to make that financial decision.
@@LP-jn4tw I also threw in the towel on some global stocks.I will let my fortunes rise or fall with an S&P 500 index fund,....and sleep a lot better too.
Hi Jake, thanks for your videos. They are great and very informative. I was wondering if you could make a video on how you record yourself as well as the screen of your computer. Many thanks from Asia.
Hey Bakhodir! I am currently in the process of moving to Las Vegas so my home studio will be completely changing this month. When I make it to Las Vegas, I can make a "home studio tour" video.
@@JakeBroe thanks for the reply! I’ve held a small position for a couple years for the dividends. After watching your investing videos I thought you might be interested in it since it looks like it’s recovering from its down trend.
Thanks for this video Jake it was very informative. I would like to see a video on your thoughts regarding sector ETFs if you haven’t done one already. Thanks!
I agree with you on IPO's.i lost money in LCID and Bros. Both my fault. There is one company that I want to buy in IPO stage in the future. But, I believe that you are right. It's hard to know what will be an anomaly. It's hard to know what will happen before it happens. And i think that if you really are familiar with a company and it's product, you can buy it at the ipo price and hold it because it will be lower capital gains at the 2 year mark, or wait the 2 years for a drop off in price. I appreciate you bringing up that bit of information. So, what are you doing this year and how? It's too dangerous to short shares right? How do you handle strategy when you need several months to see how things pan out? Or is that why I'm missing out... too much watching and waiting, and not enough buying? Lol. Great video. I can tell that you really felt this way about the topic. Have a good one bro. 👍
Thanks D L! You can follow along with all my trades in my Schwab account. I'm still just looking for stable, profitable, large cap stocks with little downside risk and then I leverage my money on them. Same plan this year as last year. Stay tuned!
I agree! However, I do own some a small amount of SBEA that is merging with Black Rifle Coffee Company. BRCC is veteran owned, has great coffee and donates to veteran causes. Worth a small investment to support a company like that.
I bought UBER just before pandemic, held through the giant dip.......and then sold when all that legal stuff started surfacing. Made a tiny profit and it never got back close to its ATH. I got lucky.
Its funny cause the hospital chain i work for integrated zoom less than 6 months before the pandemic. I was in shock when it sky rocketed because I had thought about buying its stock before everything happened.
I learned the lesson about IPOs from Coursera's stock. I think online eduction has a bright future. But in the first 2 year, the stock price is more determined by the insiders' selling power.
Seeing that data, I actually wonder if it wouldn’t be such a bad bet to place bear spreads/verticals on IPOs when they first come out, set the date a ways out to get past the initial mania, do it in large numbers and play the odds.
I've thought about this as well, and lots of people do this. Let a stock go IPO, often in the first couple weeks the price will surge, then wait for it to have 3 consecutive red days (new buyers have stopped) and then short it. They are still just too volatile and unpredictable for me.
@@treyshaffer It'll never go away, and Palantir also has opportunities outside the defense world. That said, I'm not putting more money into PLTR currently, even with the dip.
@@ChromeForDays Why would it never go away? Not asking sarcastically, I just don't know what inherent advantage the company has over any other technology consulting firm
@@treyshaffer I mean the U.S. defense industry will never go away, not Palantir. The company could certainly fail. General Dynamics, Raytheon, Lockheed Martin, Boeing, etc, all will be around for many years to come in some form or another.
I waited on LCID. I saw how bad it was when it was CCIV. I'm averaging now at $23 and still holding. This stock is gonna be volatile for a while but at my low average, I'm not selling anytime soon. I'm no genius. I bought into the hype and just got damn lucky.
When Google was coming on to the scene, Yahoo was the bell of the ball. If you'd forseen that Google would take over such a large section of the tech industry by owning Android, Google Cloud Platform, TH-cam, etc. and that Yahoo would fall into near complete irrelevance, then maybe so, but that would've been a very ballsy bet. It would be similar to saying that Snowflake is going to be the biggest company in the future, with a company like Amazon falling to the wayside. Google was priced low when it IPO'd and has performed very well obviously but I think investing in Google in 2004 and riding the wave to now would've taken enormous luck and balls of steel to have not sold anywhere along the way.
But Google had a real usefulness. I used it back in early 2000's and was impressed. It was not a toy or just fashion like many new companies. Right out of the box, for what I used it for, I thought it was better than Yahoo. I think there should be allowed exceptions to a good general rule, and Google was one. A little investment in its IPO would have gone a long way. I agree, don't mortgage your house to get investment funds, but maybe skip that Disney vacation to do so.
@@cbbcbb6803 Yeah, totally fair way to approach it. I'm not going to say what to invest in or what not to invest in, it's just that hindsight is 20/20 right. Google did also face a serious issue regarding the question of how they were supposed to make money from searches, although obviously that was addressed with advertising, but it was somewhat analogous to many tech companies today that seem like a pipe dream in terms of ever making money. I think if you were visionary enough to recognize that data is the oil of the internet age, and not many companies were at the time, then Google definitely would've been a good investment. Of course, if you like stock picking then I'd say go for it, but don't put too much of portfolio into it. Stock picking is basically gambling -- a largely rigged game that's risky but with a high upside potential -- and so should primarily be treated more as entertainment than as a financial instrument.
Jake, you use the S&P as a benchmark but what do you think about the current S&P being weighted towards tech in an inflationary economy? Inflation isn't good for tech, and as the inflation continues, won't S&P investors stand to lose a lot of money? Great video as always!
You only lose if you sell for a loss. People buying S&P 500 index funds should be buying and holding for the long term, not short term trading it. I don't worry about inflation, we have inflation every year. It's all part of the increase in valuation (revenue growth) for stocks.
I invested in Robinhood because I use it as my primary platform for investing. However, I wish I had waited The 2 years because the stock price has plummeted since its IPO.
Hey Jake I got an interesting video idea for you. Lately Nancy Pelosi had made very large options trades and I'd be interested to learn about the strategy she is using. You can find the trades she made online. All of them seem to be deep in the money contracts.
Thanks for the idea coir, but I don't want to talk about any politicians on this channel. It will just piss off half my audience and then the comments section turns in to a dumpster fire. Nothing to be gained for doing this unfortunately.
Almost seems wrong to call the S&P 500 "the market" in this because the s&p 500 is some of the top most well established companies. I'm not disagreeing with your take, but looking at an actual total market fund may be a better comparison.
The problem with total market index funds is they include the 1,500 terrible, overpriced IPOs and SPACs that have come on to the market in the last two years. I'm using the S&P 500 because they exclude all these IPOs and SPACs.
@@JakeBroe Sure but he's really just saying your semantics could be more accurate. "This underperformed the S&P by XYZ" rather than "the market". That seems fair.
Love the channel Jake, but it bugs me that you keep calling sp500 the entire market (I know the performance is pretty much the same over the years since large chunk of the market cap comes from S&P500; it's just my pet peeve)
Hey Nandan! I can't use the total stock market index (VTI) as the benchmark because it includes all these crap IPOs and SPACs. I have to use the S&P 500 because it excludes them. Cheers!
Author is making one classical blunder: he's comparing with average returns. Let's say one SPAC/IPO did really well +50% YTD profit. Another did really badly -50% YTD loss. If you average them down, you get zero as the result. Saying "SPACs/IPOs are bad because average return is bad" is wrong. It's all about your ability to select those who perform best, at same time getting rid of those who underperform. It's not about diversification. If you're constantly buying right companies at the right price, you can easily outperform the market.
I did make this video last year, lol. This is the third time I’ve made this video warning people. Ill make it again in 6 months because people keep falling for it.
I think Microsoft Teams can't completely replace Zoom. The pandemic boosted their revenue, but that kind of growth they experienced the last 2 years isn't what they will grow at the next two. It's still a good company, but I think the price will continue going down.
@@JakeBroe Thanks for the reply! Love your content btw it's a great unique perspective on TH-cam with all the growth/momentum channels and the results pretty much speak for themselves.
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Also check out my video talking about my stock market predictions for 2022 here:
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I'll admit Jake, I'm just so tempted to buy because of the hype. I've gotten burned so many times this year i am off them for good!
Haha, that's good Jackson! Resisting the hype can be difficult, but I believe in you!
I think the major takeaway is that the actual performance of a company has little to nothing to do with its stock performance during peak public offer mania. It might be a gem or a dog, but that won't be a part of the directional profile in this time period, that will only prove out over time. If you can afford the risk and are comfortable trading hype, to your point, some of these may work out. The problem is that people buy into a circus expecting a bank lobby and then don't know what to do except take a ride on the loss leader rocket. This video is a good reminder that it takes time for a stock to show how it's priced.
100% Peter! It takes time for the market to more accurately price in what it is willing to pay for a stock. That isn't going to show right away as the company usually has a lot of good will and hype after going public.
@@JakeBroe IPOs are the fly in the ointment of Efficient Markets Hypothesis. Lol "Who knows what information is priced in?"
Yes totally agree! Love your take on this. There are those small cases that did outperform the market but those are far and few in between. Most of people who invest in IPOS or spacks lose money! Awesome video Jake.
Exactly Misael! The winning IPOs are few and far between in the first two years. Much better to just wait it out!
Jake, thank you for your continued honest videos.
Thanks for watching Aziz! Cheers!
One of the few honest channel. Keep it up bro !
Thanks LG29! Cheers!
So many people put their trust and follow blindly in those TH-camrs who promote SPACs, then I read all the comments from those people (many of whom paid decent money subscribing to a member course) who can’t understand why their portfolios are in the red even when the wider market is green. Listen to Jake, people, and beware of those trying to sell you something.
Videos about exciting new IPOs and SPACs get a lot of views. These TH-camrs make their money from TH-cam adsense, not their investing. 99% of "finance TH-camrs" are just clueless at best or scammers at worst. That's my take!
@@JakeBroe “I became rich investing in the stock market, and you can too. Just start a TH-cam channel and make money through TH-cam ads!”
That about sums it up, it seems.
Great video with some practical applications. Thanks.
Thanks for watching Donnie! Cheers!
I agree on this. Made the same mistake and learn from it ever since. Lucky was the damage limited and reversed my losses into profits with a ETF.
Solid turn around gino! Got to watch out!
I love that you do your homework and then fill us in. I figured the bank was getting some, but 7% seems a pretty good incentive to pump the price and the hype.
It's been a VERY good year for the investment banks thanks to all these IPOs getting crazy high IPO valuations. People keep falling for it and they are raking it in, haha.
All I hear is: "start a SPAC and get rich off other people's money."
That's basically what everyone is doing. I just need to create a fake electric car company, come up with some really good promotional videos, and then I can retire a billionaire.
Dwac…
There is one trick a former Goldman Sachs analyst described for trading an IPO, you buy it and you hold your finger over the sell button, at the first red candle on a five minute chart you click the sell button :)
Haha, solid tip.
Hey broe I’m on my way to Florida keys for vacation for few weeks going good , and my cof call option just got into the money have untill June so it’s looking good my friend , I did a call option on a t and t and just a day after was in the money now I’m up 103% this is awesome 👏
Haha, congrats James! Looking good!
@@JakeBroe Yes sir ! Thank you for your service !
I agree with your analysis. I was one of the few who made off well with snowflake on some short trades but its very risky in the beginning with IPOs. Essentially, bet on the broad market, its safer.
Thanks RSTV! I say just wait two years. Maybe I'll pick up snowflake or Airbnb then.
I really enjoyed this. People don't often compare stocks to a benchmark. It was a nice bonus to see your quip about SDC, considering a certain TH-camr has tried pumping this stock numerous times and has failed.
Yah, Jeremy loves investing in companies that recently went IPO. I have no idea why he just wants to make things harder for himself when the past performance of IPOs is so terrible.
@@JakeBroe He's chasing the next Amazon and Netflix. He wants to claim he's the best. That's why he and many others chase companies in infancy, in my opinion.
IPO for me stands for I (buy) Puts On (it). At least in the short term
Haha, I like it MCPF!
absolutely agree with you.
Cheers simba!
JBro,.....it was your outstanding explanation video about small cap stocks that finally made me take the last bit of money I had in that fund,.....and roll it into the S&P 500. I would never blame or praise you for what the funds do in the future,.....I would just thank you for giving me the knowledge to make that financial decision.
@@LP-jn4tw I also threw in the towel on some global stocks.I will let my fortunes rise or fall with an S&P 500 index fund,....and sleep a lot better too.
Sounds good tony tony! I'm like to keep it simple in my retirement account. The S&P is all I need!
Hi Jake, thanks for your videos. They are great and very informative. I was wondering if you could make a video on how you record yourself as well as the screen of your computer.
Many thanks from Asia.
Hey Bakhodir! I am currently in the process of moving to Las Vegas so my home studio will be completely changing this month. When I make it to Las Vegas, I can make a "home studio tour" video.
Thank you Jake. Wish you all the best and good luck.
I’ve never commented on a TH-cam video before but, I’m curious what your thoughts are on AT&T? Love your channel and I wish I had found it sooner!
Hey Spencer! I think AT&T is a buy right now. I might take a position in it soon. Technicals definitely look like the stock has bottomed out.
@@JakeBroe thanks for the reply! I’ve held a small position for a couple years for the dividends. After watching your investing videos I thought you might be interested in it since it looks like it’s recovering from its down trend.
Thanks for this video Jake it was very informative. I would like to see a video on your thoughts regarding sector ETFs if you haven’t done one already. Thanks!
Hey carl! I haven't talked about sector ETFs. I can look in to it. Cheers!
I agree with you on IPO's.i lost money in LCID and Bros. Both my fault. There is one company that I want to buy in IPO stage in the future. But, I believe that you are right. It's hard to know what will be an anomaly. It's hard to know what will happen before it happens. And i think that if you really are familiar with a company and it's product, you can buy it at the ipo price and hold it because it will be lower capital gains at the 2 year mark, or wait the 2 years for a drop off in price. I appreciate you bringing up that bit of information.
So, what are you doing this year and how? It's too dangerous to short shares right? How do you handle strategy when you need several months to see how things pan out? Or is that why I'm missing out... too much watching and waiting, and not enough buying? Lol. Great video. I can tell that you really felt this way about the topic. Have a good one bro. 👍
Thanks D L! You can follow along with all my trades in my Schwab account. I'm still just looking for stable, profitable, large cap stocks with little downside risk and then I leverage my money on them. Same plan this year as last year. Stay tuned!
I agree! However, I do own some a small amount of SBEA that is merging with Black Rifle Coffee Company. BRCC is veteran owned, has great coffee and donates to veteran causes. Worth a small investment to support a company like that.
Makes sense! You always can just invest in the companies you love and not worry about it. Cheers Louis!
I bought UBER just before pandemic, held through the giant dip.......and then sold when all that legal stuff started surfacing. Made a tiny profit and it never got back close to its ATH. I got lucky.
It's been a rough time for Uber! Food deliveries have been keeping them in business!
I wish you told us this earlier enough, some of us would not be stack where we are now. We have learned the hard way
Just don't be cocky. You can't beat the market, just get the average market returns and you'll beat the average investor though
I've already made two previous videos about not buying IPOs and I mention it in every one of my livestreams when people ask, lol.
Im new to investing so ty for the vid
Thanks for watching Mr N! Glad you found my channel!
Epic video with amazing transparency and facts !! Thank you 👍🏼🙌🏼🙏🏽Your so underrated 😢
Thanks so much Ty! I appreciate that!
Jake you always come up with such great variety of educational contents.
Thanks Wolfgang! I try my best!
Its funny cause the hospital chain i work for integrated zoom less than 6 months before the pandemic. I was in shock when it sky rocketed because I had thought about buying its stock before everything happened.
Almost Daniels! Plenty more opportunities in the future I'm sure!
I learned the lesson about IPOs from Coursera's stock. I think online eduction has a bright future. But in the first 2 year, the stock price is more determined by the insiders' selling power.
Yeah, I've personally used Coursera and love the service. But might be worth coming back to after two years. Cheers Jackson!
Seeing that data, I actually wonder if it wouldn’t be such a bad bet to place bear spreads/verticals on IPOs when they first come out, set the date a ways out to get past the initial mania, do it in large numbers and play the odds.
I've thought about this as well, and lots of people do this. Let a stock go IPO, often in the first couple weeks the price will surge, then wait for it to have 3 consecutive red days (new buyers have stopped) and then short it. They are still just too volatile and unpredictable for me.
I'm bullish on PLTR for the long term, definitely not a get rich quick stock.
I honestly don't know enough about the company. I'll see if the price comes down at the two year mark and then check i out!
Depends on what you see as the future for the military industrial complex. Palantir makes much of their money from those government projects.
@@treyshaffer It'll never go away, and Palantir also has opportunities outside the defense world. That said, I'm not putting more money into PLTR currently, even with the dip.
@@ChromeForDays Why would it never go away? Not asking sarcastically, I just don't know what inherent advantage the company has over any other technology consulting firm
@@treyshaffer I mean the U.S. defense industry will never go away, not Palantir. The company could certainly fail. General Dynamics, Raytheon, Lockheed Martin, Boeing, etc, all will be around for many years to come in some form or another.
I waited on LCID. I saw how bad it was when it was CCIV. I'm averaging now at $23 and still holding. This stock is gonna be volatile for a while but at my low average, I'm not selling anytime soon. I'm no genius. I bought into the hype and just got damn lucky.
Best of luck in your investment JP! Cheers!
Thank you Jake, a quality video as usual. 👍👍👍
Thanks taybouhari! Cheers!
I’m still down 28% on my coin base purchase (1 share) but still wish I had the cash working else where.
That stock just seems to trade with crypto. So I feel like if you want that exposure you are better off holding crypto. Cheers Wilson!
But what about a company like Google that had a few years of proven usefulness before it gave its IPO?
A lot of companies do prove to be useful before the IPO, but just because it’s a good company doesn’t mean it can’t be overvalued.
When Google was coming on to the scene, Yahoo was the bell of the ball. If you'd forseen that Google would take over such a large section of the tech industry by owning Android, Google Cloud Platform, TH-cam, etc. and that Yahoo would fall into near complete irrelevance, then maybe so, but that would've been a very ballsy bet. It would be similar to saying that Snowflake is going to be the biggest company in the future, with a company like Amazon falling to the wayside.
Google was priced low when it IPO'd and has performed very well obviously but I think investing in Google in 2004 and riding the wave to now would've taken enormous luck and balls of steel to have not sold anywhere along the way.
But Google had a real usefulness. I used it back in early 2000's and was impressed. It was not a toy or just fashion like many new companies. Right out of the box, for what I used it for, I thought it was better than Yahoo. I think there should be allowed exceptions to a good general rule, and Google was one. A little investment in its IPO would have gone a long way. I agree, don't mortgage your house to get investment funds, but maybe skip that Disney vacation to do so.
@@cbbcbb6803 Yeah, totally fair way to approach it. I'm not going to say what to invest in or what not to invest in, it's just that hindsight is 20/20 right. Google did also face a serious issue regarding the question of how they were supposed to make money from searches, although obviously that was addressed with advertising, but it was somewhat analogous to many tech companies today that seem like a pipe dream in terms of ever making money.
I think if you were visionary enough to recognize that data is the oil of the internet age, and not many companies were at the time, then Google definitely would've been a good investment. Of course, if you like stock picking then I'd say go for it, but don't put too much of portfolio into it. Stock picking is basically gambling -- a largely rigged game that's risky but with a high upside potential -- and so should primarily be treated more as entertainment than as a financial instrument.
Nah, not worth the risk. Just wait 2 years and then buy the stock.
I have to admit I get carried away with ipo but I did make some money on riviqn and lucid motors
Haha, you make money on Rivian? Must have got in and got out in less than a week before it collapsed.
@@JakeBroe I did now I understand what you about ipo
I never did have a good feeling about Rivian.
Haha, that IPO valuation was a joke. I should have shorted it, but people are just so irrational right now about EV stocks.
Jake, you use the S&P as a benchmark but what do you think about the current S&P being weighted towards tech in an inflationary economy? Inflation isn't good for tech, and as the inflation continues, won't S&P investors stand to lose a lot of money?
Great video as always!
You only lose if you sell for a loss. People buying S&P 500 index funds should be buying and holding for the long term, not short term trading it. I don't worry about inflation, we have inflation every year. It's all part of the increase in valuation (revenue growth) for stocks.
I invested in Robinhood because I use it as my primary platform for investing. However, I wish I had waited The 2 years because the stock price has plummeted since its IPO.
That stock might actually be a good buy after two years! I'll look in to it and see how far the price has fallen. Cheers Keisha!
Great advice 👍👍
Calm down Jake. We hear you lol
I just get so passionate about stopping people from throwing their money away on IPOs and SPACs, lol.
@@JakeBroe thanks for the advice, never invested in ipo’s but glad to now avoid them for sure
Hey Jake I got an interesting video idea for you. Lately Nancy Pelosi had made very large options trades and I'd be interested to learn about the strategy she is using. You can find the trades she made online. All of them seem to be deep in the money contracts.
Thanks for the idea coir, but I don't want to talk about any politicians on this channel. It will just piss off half my audience and then the comments section turns in to a dumpster fire. Nothing to be gained for doing this unfortunately.
Thanks for the clear level headed analysis, unfortunately I drank the kool aid, somI will have to wait and hold, but I have learned my lesson!
That's good you got the lesson! Cheers Andy!
Great video
Thanks Mateo! Cheers!
How about shorting them?
You can, lots of people do. The problem is that in the short term they act very irrationally and volatile. I personally just choose to avoid them.
Almost seems wrong to call the S&P 500 "the market" in this because the s&p 500 is some of the top most well established companies. I'm not disagreeing with your take, but looking at an actual total market fund may be a better comparison.
This is a pretty good take.
The problem with total market index funds is they include the 1,500 terrible, overpriced IPOs and SPACs that have come on to the market in the last two years. I'm using the S&P 500 because they exclude all these IPOs and SPACs.
@@JakeBroe Sure but he's really just saying your semantics could be more accurate. "This underperformed the S&P by XYZ" rather than "the market". That seems fair.
@@JakeBroe Yeah, I truncated my comment to keep it down to 2 quick sentences and cut out that exact line (which i probably stole from you)!
You missed PLTR?
Love the channel Jake, but it bugs me that you keep calling sp500 the entire market (I know the performance is pretty much the same over the years since large chunk of the market cap comes from S&P500; it's just my pet peeve)
Hey Nandan! I can't use the total stock market index (VTI) as the benchmark because it includes all these crap IPOs and SPACs. I have to use the S&P 500 because it excludes them. Cheers!
When is the Jake Broe IPO launching? I can't wait to buy into this channel when it goes public. $JAKE 🚀 ➡️ 🌖
Haha, that's a great ticker symbol. I bet people would but the stock on the first day just for that ticker symbol. Cheers WV!
I was here yo!
Yes you were!
Author is making one classical blunder: he's comparing with average returns. Let's say one SPAC/IPO did really well +50% YTD profit. Another did really badly -50% YTD loss. If you average them down, you get zero as the result. Saying "SPACs/IPOs are bad because average return is bad" is wrong. It's all about your ability to select those who perform best, at same time getting rid of those who underperform. It's not about diversification. If you're constantly buying right companies at the right price, you can easily outperform the market.
But I'm going to make a killing on the Black Rifle SPAC! lol
Haha, cheers Smith!
Every stock IPOed at some point
Yeah... and most underperform the market their first two years and people are better off waiting to buy them.
If you had made this video a year ago, you would have saved people hundreds of thousands....if not millions
I did make this video last year, lol. This is the third time I’ve made this video warning people. Ill make it again in 6 months because people keep falling for it.
@@JakeBroe also, there are ipos like UPST, APPS, CRWD which are up a lot compared to IPO times...
Jake do you like NFT’s?
No, I don't understand the appeal of NFTs. It all seems over valued to me.
Oops my bad 😞 you broke down PLTR….my bad. Sorry 👍🏼🙌🏼🙏🏽
it took you until 3 days ago to realize something that has been trash for over a year now? Spacs were only good in 2020
No... I've made this exact same video pretty much twice before. I tell my viewers every year to stop buying IPOs and SPACs in their first two years.
@@JakeBroe ok, then I retract my statement, I think it's a great thing you are reminding people to avoid trash companies., multiple times. good job.
Why do you think ZM will keep going down, it's getting close to the PE's of Microsoft and Apple
I think Microsoft Teams can't completely replace Zoom. The pandemic boosted their revenue, but that kind of growth they experienced the last 2 years isn't what they will grow at the next two. It's still a good company, but I think the price will continue going down.
@@JakeBroe Thanks for the reply! Love your content btw it's a great unique perspective on TH-cam with all the growth/momentum channels and the results pretty much speak for themselves.