Chowdhry: Box's Results Validate It Was Junk IPO, Should Have Been Priced At $5

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Following the results reported by Box Inc BOX, Global Equities Research’s Trip Chowdhry commented that the company’s IPO should have been priced at $5, giving investors an opportunity to make some money.

The IPO marked the peak of the stock, analyst Trip Chowdhry said. His research notes in early 2015 had mentioned that Box was a “total junk company,” and that it would be the next Zynga Inc ZNGA, Groupon Inc GRPN, GoPro Inc GPRO and Violin Memory Inc VMEM.

Related Link: Box Is Working Against Its Own Plans: JPMorgan Downgrades To Neutral

Calling Box a hyper-inflated stock, Chowdhry wrote, “…sadly BOX IPO is not the end of Junk IPO parade.” He said the other Junk IPOs that were “in the works” were Nutanix, Twillo, Pinterest, Cloudera and Palantir, and added that the real value of these companies were a fifth of the peak private company valuations.

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Posted In: Analyst ColorShort IdeasAnalyst RatingsTechTrading IdeasGlobal Equities ResearchTrip Chowdhry
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