Buying IPOs: Are They Really Worth All the Hype?

Investors love initial public offerings (IPOs). We tend to remember big IPOs that double in a few hours of trading. Navan (NAVN) -- a company that uses AI to manage corporate travel -- debuted last Thursday, and let’s just say this won’t be one of those IPOs we tend to remember. NAVN dropped 20% from its $25 IPO price on the first day of trading. I wondered if this rough start might actually lower expectations and set the stage for better performance in the future. This week, I’m taking a quantitative loo ...