viralamo

Menu
  • Technology
  • Science
  • Money
  • Culturs
  • Trending
  • Video

Subscribe To Our Website To Receive The Last Stories

Join Us Now For Free
Home
Technology
Hardware IPOs continue to struggle – TechCrunch
Technology

Hardware IPOs continue to struggle – TechCrunch

20/12/2019

Now that the final technology IPOs of 2019 have touched down, it’s a good time to start looking back at what happened during the year. We’re hunting for trends as the clock winds down. Here’s one that’s obvious: Hardware startups are still struggling.

It’s cliché to note in startupland that hardware is hard. Everyone knows it. Making hardware is difficult by itself, but as all tech hardware requires software, hardware shops wind up needing wider domain expertise than pure-software startups. And that’s hard.

But even if a nuts-and-bolts tech company hits scale, it seems difficult to keep that momentum up.

This year we saw Peloton, a hybrid hardware and digital services company, go public and struggle. Despite a recent public market resurgence, the company is slipping back toward its IPO price. Today its equity is trading down about 6% to around $30 per share. The company’s IPO price of $29 is uncomfortably close to its current value.

2019’s IPO crop also included EHang, a late entry to the market (more here on its debut) that quickly began to lose altitude after it started to float. EHang traded up today, but the firm is still worth less than its IPO valuation, a reduced figure that was dinged during the China-based drone company’s march toward the public markets.

So, Peloton is about flat and EHang is down. That’s not a great mix of results for a year’s IPO class of hardware companies. Looking back in time, things don’t get much better.

NIO, a China-based electric car company (despite making this thing of beauty), has deleted about two-thirds of its value since its late-2018 U.S.-listed IPO. After going public at $6.25, shares of NIO are worth just $2.70 today.

Sonos also went public in the United States in 2018. It traded above its IPO price of $15 at first. Then it fell under $10 per share as 2018 came to a close. The smart speaker and stereo company spent 2019 recovering. It’s now worth its IPO price again, closing trading today worth about $14.80 per share.

If you go back to 2017, however, Roku has kicked ass. After pricing at $14 per share, the TV hardware and digital services firm is trading for $137 per share, a nearly 10x gain. But Roku was moving away from hardware at the time of its IPO, making it a somewhat poor example. Hardware revenues for Roku were just 31% of revenue in its most recent quarter, for example. That figure was 42% in the year-ago quarter. It will continue to fall.

We don’t need to go over what happened to Fitbit and GoPro, I don’t think.

Hardware can make a lot of money. Samsung and Apple make oceans of money from their hardware. Microsoft has managed to make Surface into a real business, with billions of dollars in yearly revenue. Amazon has a big hardware business with both consumer reading gadgets and consumer surveillance devices. Even Google is taking its new phone seriously enough to buy out a chunk of the NBA’s ad slots (I think it’s this one), according to my extensive in-market testing. Facebook is the laggard of the group.

But for smaller hardware companies going public, unless I’m missing a number of recent of IPOs — and I don’t think that I am — it’s a tough world out there.

Source link

Share
Tweet
Pinterest
Linkedin
Stumble
Google+
Email
Prev Article
Next Article

Related Articles

Sony AI launches the Gastronomy Flagship Project to apply AI to cooking
In April 2020, Sony launched Sony AI, an organization with …

Sony AI launches the Gastronomy Flagship Project to apply AI to cooking

Google will rank webpages based on Web Vitals, but not in 2020
Google today announced that a webpage’s experience will eventually be …

Google will rank webpages based on Web Vitals, but not in 2020

Leave a Reply Cancel reply

Find us on Facebook

Related Posts

  • Beat Saber is now an Oculus studio after Facebook acquisition
    Early Monzo employee Simon Balmain is joining …
    17/04/2020
  • PlayStation 5 gets Godfall looter-slasher from Gearbox Publishing
    Otonomo raises $46 million to expand its …
    02/05/2020
  • Google’s Project Zero discloses Windows 0day that’s been under active exploit
    One of the Internet’s most aggressive threats …
    03/12/2020
  • 2020 will be a big year for online childcare — here are 7 startups to watch
    SpaceX said to be seeking around $250 …
    22/02/2020
  • Fast & Furious: Crossroads lives video games a quarter-mile at a time
    Codeacademy has already outlived many rivals — …
    20/02/2020

Popular Posts

  • High fossil fuel prices are good for the planet—here’s how to keep it that way
    High fossil fuel prices are good for …
    20/06/2022 0
  • Top 10 Mysteries, Cold Cases & Puzzles …
    23/05/2022 0
  • Ransomware attack on Planned Parenthood steals data of 400,000 patients
    Why it’s hard to sanction ransomware groups
    23/05/2022 0
  • 10 Most Common Mutations in Humans – …
    24/05/2022 0
  • 10 Signs You Might Have Already Been …
    24/05/2022 0

viralamo

Pages

  • Contact Us
  • Privacy Policy
Copyright © 2022 viralamo
Theme by MyThemeShop.com

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh