The IPO market remains in a state of madness

Author: Adam Button | Category: News

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.

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