Gurley says 2019 IPOs transferred $6 billion in first-day wealth despite losses from Uber, Lyft, and Peloton.
“if you look at the first day pop net of the losses of the companies that have broken issue, Uber, Lyft, and and, Peloton, it's 6,000,000,000 to the positive, $6,000,000,000 in first day wealth transfer net gains.”
Gurley cites $171 billion in first-day wealth transfer over thirty-eight years from IPO underpricing.
“You know, thirty, forty years over the past thirty eight years, 171,000,000,000 in First Day Wealth Transfer.”
Gurley argues IPO allocations transferred $4.5 billion in wealth from Snowflake to allocation recipients overnight.
“And so the day after the IPO, the people that were allocated the stock the night before have 4,500,000,000 in wealth they didn't have before. And that money didn't just come out of nowhere.”