"All Time High" Is Now A Market Condition: Box Pulls IPO

Tyler Durden's picture

It appears, despite the Dow closing at record all-time-highs, 'they' are running out of greater fools. As WSJ reports, Box Inc - the online storage startup - is delaying its IPO plans "after a sudden weakening in demand for technology stocks." It seems 'all-time-highs' is now not enough, as people close to the company said the offering may not happen until June, and no timing has been set... we assume all-time-higher-highs are required as WSJ notes, investors' love affair with cloud software companies is waning (as the greatest fools are all tapped out... or waiting for Alibaba's 'easy money').

 

 

As WSJ reports,

The online-storage startup is delaying its plans for an initial public offering after a sudden weakening in demand for technology stocks.

 

Box's March 24 IPO filing made it eligible to list shares as early as April, but people close to the company said the offering may not happen until June, and no timing has been set.

 

A Box spokeswoman declined to comment, citing the IPO quiet period.

 

...

 

"Eighteen months ago that company could have gotten away without a path to profitability," Kevin Stadtler, principal at investment fund Stadtler Capital Management in Fort Worth, Texas, said of Box. Now, he said, "there's not a public market for companies like that."

 

Adding to Box's challenge, IPOs in the broader software category have struggled. Software-company IPOs in 2014 were down about 20% from where they closed trading in their first session, according to Dealogic.

Of course, growthy firms are not taking this lying down...

"None of the fundamentals have changed, it's just that the multiples got out in front," said Tony Zingale, chief executive of Jive Software Inc., a maker of online-messaging tools sold to companies.

Nope - the fundamentals are just as fantastical as ever... and people are realizing.