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A comment on Salesforce Signs Definitive Agreement to Acquire Slack. Parent comment

Re:Salesforce Signs Definitive Agreement to Acquire Slack by eecks on Wednesday December 02, 2020 @02:30PM (#25280432)
So are you saying it is worth investing in unprofitable companies (at IPO time) because the market will force the company to improve it's profitability going forward?
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Re:Salesforce Signs Definitive Agreement to Acquire Slack by rchaud on Thursday December 03, 2020 @06:06PM (#25296641)
I am saying almost the opposite, actually.

The time to invest in an IPO stock is before it goes public, not after. IPOs are priced to extract the maximum possible capital, partly why the prices usually dive within the first trading day. Buying on the secondary market (NYSE/NASDAQ)is putting money in the pockets of the investment bank that underwrote the issue.

Of course once a company has been public for a while and there is sufficient public information about their performance, you can choose to go the value investing path.

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