The IPO market remains in a state of madness
Online pet food store jumps 75% in IPO
You can't help but notice the parallels between now and the dot-com crazy.
Chewy.com is an online pet food store and its shares just debuted on Nasdaq. The IPO was initially targeted in the $19-21 range but it was bumped up and priced yesterday at $22. It just opened for trading at $37.80 -- a 78% pop -- and has continued to $39.88.
That gives the company -- which lost $328m last year on $3.3B in revenue -- a market cap of more than $16 billion.
The company's business is reminiscent of pets.com, which was an insane IPO in the dot-com era and later failed spectacularly. It's one of many IPOs in the past few months that have had impressive runs.