Tuesday, August 9, 2011

The fall of the Nasdaq may delay the IPO of companies in the high tech sector

7% in one day, Monday, less than 11% since the beginning of the year, like all other indices of major stock exchanges, the Nasdaq, which brings together the main values of the technology sector, is experiencing a dramatic decline, reinforced in recent days. U.S. large caps such as Apple, Google and Microsoft were battered on Monday.

At the close, the action of the company has lost $ 20 apple, down 5.46%. The title of Google loses 5.7%. But the greatest losses are recorded by Oracle, specializing in the management of databases that is declining by more than 8%. Ironically, while the fall in markets has been precipitated by the deterioration of the U.S.

debt rating by Standard and Poor's, Nokia, which saw its debt rating degraded by Moody's in late July, remains in the average of the index, with 7% loss. These are the groups newly introduced on the stock market experiencing the worst results. Listed since May, LinkedIn, the social network for professionals, losing more than 16%.

This drop comes just days after the publication of quarterly results of the group, which far exceeded expectations. LinkedIn has published a turnover more than doubled to 121 million dollars (85.6 million). It far exceeds the $ 104.7 million (74.1 million) which had been expected to analysts.

Net income, still modest but more than quadrupled over the past year totaled $ 4.5 million (3.2 million). The action of the music service Pandora, IPO since June, for its part is down over 7.6% in New York. The title Renren Chinese social network, he recorded a decline of more than 11%, and is now worth 6.75 dollars (4.73 euros).

The fall of the market could delay new IPOs for companies in the sector. Several companies related social networks are opening up their capital in the coming months: Zynga, which mainly publishes games for Facebook, filed its IPO application with the U.S. authorities. The company hopes to raise one billion dollars, but market conditions may make scoring difficult, especially as Zynga is structurally very dependent on Facebook.

Facebook itself will eventually be forced to open its capital due to U.S. law, which requires companies with more than 500 shareholders a market entry. This limit is already almost reached, and the giant social network could delay its IPO only just. Mark Zuckerberg, founder and CEO of the company, does not support a company's IPO, and has always refused to announce a date for an IPO.

In fact, the company does not need to be listed to raise funds: investors rush to buy at high prices of shares of the company in the secondary market.

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