By Noel Randewich and Arjun Panchadar
SAN FRANCISCO (Reuters) – Three of Wall Street's top-performing IPOs in 201
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cyber-security company Crowdstrike
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And business software seller Medallia
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In a year marked by disappointing public listings by Uber Technologies
Before Thursday's post-fall decline, Zoom was up 157% from its original offering in April, Crowdstrike had increased 155% since it was released in June, and Medallia was up 74% from its July listing.
Sales on Thursday, even after the money – losing companies beat consensus expectations, suggest that investors may be more concerned about high valuations.
"The strong pressure and weakness of the shares has been a recent pattern," said analyst Alex Henderson.
"Investors are leery of this market today, tomorrow and appear to be selling in strength, and unwilling to let them ride, preferring to make profits," Henderson added.
Earlier on Thursday, Crowdstrike traded about 85 times expected earnings for the next 12 months, while Medallia traded a multiple of 37, according to Refinitive data.
Zoom had a turnover of 38 times expected turnover over the next 12 months. On average, analysts do not expect Zoom to report a non-GAAP result before the quarter ending October 2020.
Both Zoom and Crowdstrike's year-over-year revenue growth was reduced from the first quarters as a public company. Zoom's sales growth slowed to 96% in the second quarter, from 103% in the first, while Crowdstrike's growth slowed to 94%, from 103%.
Uber has been down 28% since its IPO in May, which would have easily been the year's most anticipated. It is now regarded as the most disappointing, while Lyft has dropped 36% from the IPO in March.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Slack Technologies Inc's
(Reporting by Noel Randewich in San Francisco and Arjun Panchadar in Bengaluru; Editing by Richard Chang and Shailesh Kuber)