Us stock IPO frenzy to create the Internet Bubble since the most BlackRock warning: unsustainable!

SMM: the frenzy of the IPO market in US stocks this year is the highest since the Internet Bubble in 2000. Meanwhile, BlackRock (BlackRock Inc.), the world's largest asset manager, warned the frenzied IPO market that excessive IPO pricing was "unsustainable" and that there could be many "accidents" in the future.

So far this year, there have been 430 IPO transactions in the US stock market, the highest level since 2000, and fundraising has exceeded $160 billion, an all-time high, according to Dealogic, an IPO data research firm.

In addition to the record size of issuance, the average first-day return of US stocks IPO this year is also the highest since the Internet Bubble.

According to data compiled by Ritter (Jay Ritter), a professor at the university of Florida and an expert on IPO, the average first-day return on IPO for u.s. stocks this year was 41%, the highest level since 2000. During the Bubble era of the internet in 2000, IPO rose by an average of 56 per cent on its first day.

In the second half of this year, with the sharp rise in US stocks, star companies such as Xiaopeng, ideal and Snowflake landed in US stocks one after another, and this week's listing of Airbnb and Doordash pushed the upsurge of IPO to the best part.

Us stocks have experienced sharp falls and gains this year, which has led to a sharp increase in short-term traders such as Robin Hood (Robinhood) and quantitative traders this year, which in turn have further intensified speculative sentiment in the market, with some market experts repeatedly warning the Bubble Initiative.

Larry Fink (Larry Fink), chief executive of BlackRock, the world's largest asset manager, is cautious about the current hot IPO market. Mr Fink said the pricing levels of some IPO were ultimately "unsustainable". But he didn't specify which company.

"the question is: is the market overpricing the expected growth rates of these companies?" "there may be a lot of accidents," Fink warned at an online event on Friday. "

Shares of Airbnb, a housing rental company, more than doubled on its first day of trading on Thursday, with its market capitalization soaring to more than $100 billion before falling back on Friday.

After its IPO on Wednesday, DoorDash's soaring share price pushed its total market capitalization to more than $55 billion, compared with a valuation of just $16 billion in the last round of private equity.

Anjali Jariwala, founder of Fit Advisors, said: "people should be cautious about IPO because they tend to be overvalued before they go public. Like any investment, you should be careful not to be swallowed up by the media frenzy. "