Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Uproar After NC State Agent 'Fixes' Girl's Lunch Preschooler has to eat chicken nuggets instead of mom's meal »

Wall Street Snapping Up Losers

Tech companies with no profits are enjoying hot IPOs again

By Peter Fearon,  Newser Staff

Posted Mar 28, 2007 9:46 AM CDT

(Newser) – Money-losing tech companies are enjoying overheated IPOs again. In a disconcerting echo of 1999, Forbes reports more than half the companies going public so far this year have yet to turn a profit. "The losers may be us," Quentin Hardy cautions, "a public suddenly so hot for growthy tech stocks that quality standards are starting to slip."

The share of moneylosing companies has risen dramatically in the last few months, Hardy observes.  "In the last two years 392 companies went public, according to Renaissance Capital, and 71% of them were profitable. But so far this year only 39% of the 41 companies that have gone public have profits."

'
'   (Getty Images)
'
'   (Getty Images)
'
'   (Getty Images (by Event))
  (Getty Images)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Facebook IPO Could Top $10B

Facebook Employees Dreaming of IPO Christmas

Stocks Open Down on Gloomy Germany News

When It Comes to Tech Bubbles, 2011 Is Not 2000

SEC Investigates Jim Cramer's Website


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne