Some stocks perform very well after the IPO. But the 790% increase cannot be described simply by "very good". It is completely unthinkable.
Popular cultureIt is the latest unthinkable and has quickly become a candidate for a stock market boom. The hip-hop culture company went public on Wednesday at $6 a share, with a market capitalization of about $140 million. By Friday, the stock had risen about 790%, with its market capitalization soaring to $1.27 billion.
The stock jumped 405% on its first day of trading on Wednesday, ranking fifth in the history of the u.s. stock market, according to aggregated data. At the top of the list was 100 million express services, which rose by an eye-popping 100% on its first day of trading in May.
Pop's strong rally cooled on Friday, with shares falling 11 per cent to $53.40, still about $47 higher than IPO.
Pop Culture's IPO prospectus says revenue in the 12 months to June 2020 is about $15.7 million, nearly half of which comes from event hosts. The data show that at Friday's closing price, the earnings ratio of the stock market is more than 300 times that of Apple.Ten times the size of the company.