Data analytics provider Domo popped 30% on Friday, flying in the face of the many financial journalists who derided its egregious spending habits and the CEO's voting control. They may have the last laugh: its stock sunk 13% on Monday.
What's causing the unusually volatile early trading?
All tech IPOs have been hot
Domo (DOMO) may have initially benefited from a trend we noted in our newly-released IPO Quarterly Review: the average tech IPO from the 2Q18 is up 60% from its offer price. 17 of the quarter's 18 tech IPOs finished in positive territory. Many IPO investors will see that trend and buy all tech IPOs, without paying too much attention to what's under the covers.
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