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Jawbone: Another Company To Join The 'Junk IPO Parade'?

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Jawbone: Another Company To Join The 'Junk IPO Parade'?

Global Equities Research's Trip Chowdhry commented on Jawbone's downfall and possible IPO, referencing Fitbit Inc (NYSE: FIT)'s past "Junk IPO," stating that Jawbone could be just one of the many junk stocks "on parade" that have recently had an IPO.

The comments came after Jawbone considered exiting the wearables business and selling its speaker business.

"Jawbone is another Junk [company] waiting for IPO and fundamental investors should be extremely cautious on Jawbone," Chowdhry stated. The analyst downplayed Fitbit, stating that Jawbone would be "worse" than Fitbit's IPO.

Related Link: Chowdhry: Amazon And Microsoft Make Palo Alto "Irrelevant"

"The problem is that Jawbone already got all the stupid investors they could ever get [...] none are left now, who are willing to breath the company's exhaust," said Chowdhry. If Jawbone thinks they can get the Public Markets to bail them out, they are wrong, stated the analyst.

'The Junk IPO Parade'

"We have already seen the Junk IPO Parade," the analyst stated, citing the following issues he categorizes as "junk":

  • Box Inc (NYSE: BOX)
  • Groupon Inc (NASDAQ: GRPN)
  • Twitter Inc (NYSE: TWTR)
  • GoPro Inc (NASDAQ: GRPO)
  • Zynga Inc (NASDAQ: ZNGA)
  • Fitbit
  • Tableau Software Inc (NYSE: DATA)

The analyst believes the "Junk IPO Parade" is far from over and will continue with names such as Cloudera, Pinterest, Palantir and Snapchat.

Latest Ratings for GRPN

DateFirmActionFromTo
Feb 2019Goldman SachsInitiates Coverage OnNeutral
Sep 2018WedbushInitiates Coverage OnNeutral
Jul 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for GRPN
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Posted-In: Cloudera Global Equities Research Jawbone PalantirAnalyst Color Analyst Ratings Tech Trading Ideas Best of Benzinga

 

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StockFirmActionPT
PEPMorgan StanleyReiterates137.0
AZRXH.C. WainwrightMaintains7.0
PEPMacquarieMaintains138.0
POLBuckinghamMaintains36.0
BKBuckinghamMaintains53.0
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