Why Affirm and Roblox Postponed Their IPOs

It looks like the initial public offering market has turned too hot to handle, as financial tech company Affirm Holdings and videogame company Roblox have delayed their IPO plans.

The moves, first reported by Dow Jones, came after DoorDash  (DASH) – Get Report and Airbnb  (ABNB) – Get Report saw their IPOs skyrocket last week. DoorDash jumped 86% in its first day of trading Wednesday, and then Airbnb doubled in its premier a day later.

Affirm and Roblox likely want to see the dust settle before diving in. Market mania is now in full swing for IPOs. The Renaissance IPO ETF  (IPO) – Get Report has soared 111% year to date.

While early surges help those who buy shares in IPOs or receive them before the stocks go public, such surges mean the issuers left money on the table. So Affirm and Roblox may be reluctant to begin trading in such an environment.

So far this year, valuations for technology companies that have gone public registered a median of 23.9 times their revenue for the 12 months prior to going public, University of Florida business professor Jay Ritter told The Wall Street Journal.

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