Summary

Wall Street is infamous for bringing overvalued tech IPOs during the latter stages of a bull market.

Many of these IPO overvaluations are driven by an attractive product or service that captures the attention of investors.

The narrative of a hot product or service enables IPO underwriters to drum up enthusiasm for the offering, hence the overvalued offering price.

After the IPO party is over, then the reality of quarterly financial reports begin to hit home. It becomes clear that the over-promised hype of the IPO does not match the reality of the company's actual performance.

This is the classic pump and dump scheme that Wall Street underwriters have employed for decades. Millennials being the newest generation to experience Wall Street's ways are now likely wiser, albeit less wealthy.