The initial public offering (IPO) of a company’s stock can be a risky investment. IPOs tend to underperform compared to the average of the rest of the market. Even high-profile IPOs such as Uber, Lyft, and Peloton took dramatic plunges in value in their first days of trading. On the bright side, dramatic turnarounds like these offer investors a chance to earn huge returns on the IPOs of underperforming companies they believe to have a bright future.
Source: https://www.cashnetusa.com/blog/if-youd-invested-1000/
