Two Popular New Stocks Postpone Their IPOs

  • The IPOs of Airbnb and Doordash last week brought the trend of US stock speculation to a climax.
  • Roblox originally expected to go public this month and join the hot IPO market at the end of the year.
  • Affirm, a platform that provides installment loans to online shoppers, is also considering postponing its IPO until 2021

The IPOs of Airbnb and Doordash last week brought the trend of US stock speculation to a climax. Since the beginning of this year, there have been 420 IPOs in the U.S. stock market, with a financing scale of over $149 billion, which is close to a 20-year high.

Roblox is an online game platform and game creation system that allows users to program games and play games created by other users. Founded by David Baszucki and Erik Cassel in 2004 and released in 2006, the platform hosts user-created games of multiple genres coded in the programming language Lua.

However, with the postponement of IPOs of two popular new stocks, this year’s new wave of US stock speculation may face the risk of outage.

The first is the game development platform Roblox. The company originally expected to go public this month and join the hot IPO market at the end of the year.

Roblox is a free online platform with millions of games. These games are mainly developed by players using tools provided by the company.

Roblox sells virtual currency called Robux to users, purchases auxiliary functions in the game, and promotes revenue.

After the outbreak of the new coronavirus epidemic, the online game boom was set off. However, after seeing the hot performance of Airbnb and Doordash after their listings, Roblox executives thought it was really difficult to price the company’s IPO.

In addition to Roblox, Affirm, a platform that provides installment loans to online shoppers, is also considering postponing its IPO until 2021.

Affirm originally hoped to go public in December, but because it has not yet obtained the approval of the US Securities Regulatory Commission (SEC), the IPO may be postponed until next year.

The media quoted news that the company can still start the IPO during the window period, and has not yet made a final decision, and the IPO timing may change.

Panic Index Rebounds 15% in Two Weeks

Last week, the three major U.S. stock indexes fell across the board and a record number of new cases of new coronavirus made the public health crisis worse. The slow negotiation process of the U.S. Congress to stimulate the bill suppressed market confidence.

Affirm is a privately held financial technology company headquartered in San Francisco, United States. Founded in 2012, the company operates as a financial lender of installment loans for consumers to use at the point of sale to finance a purchase.

It is worth noting that the CBOE Panic Index (VIX), which measures market volatility, has rebounded 15% since December.

Whether the two parties can reach a key consensus in the coming week may become the fuse for the US stock market before the holiday. The problems facing the U.S. government are becoming more and more urgent.

On the one hand, there is the accelerated spread of the new coronavirus pneumonia epidemic after Thanksgiving, and on the other is the potential “closed door” threat and deadlocked fiscal stimulus negotiations.

This is the second time the United States is facing the risk of a shutdown during the year. Due to the “border wall” budget problem, the Trump administration just created a 34-day “vacuum period” at the end of last year.

The problem facing the White House now is how to solve the two major problems of the budget and the stimulus bill that are tied together within a week.

Democrats and Republicans over the past week on the progress of the negotiations are optimistic attitude, but the differences have not been substantially resolved.

Among the existing two major proposals, some members of the two parties jointly proposed a $908 billion proposal that was opposed by the Republican Party because they did not approve of corporate responsibility protection and provisions for state and local government assistance.

The $916 billion proposal proposed by Treasury Secretary Mnuchin on behalf of the White House did not satisfy the Democratic Party because it did not include any additional federal unemployment benefits.

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Doris Mkwaya

I am a journalist, with more than 12 years of experience as a reporter, author, editor, and journalism lecturer." I've worked as a reporter, editor and journalism lecturer, and am very enthusiastic about bringing what I've learned to this site.  

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