BIRD - Robinhood Oatly Honest Company lead long list of once-hot IPO stocks to hit record lows

Robinhood (NASDAQ:HOOD), Oatly (NASDAQ:OTLY), Honest Company (NASDAQ:HNST) and many other of 2021’s seemingly hottest IPOs sank to all-time lows Friday as fears of Omicron and tighter Federal Reserve policies apparently drove investors away from recently public stocks. “With all the faster-taper talk from the Fed, the market is pricing in at least temporarily a higher cost of capital, which will tend to reduce … price multiples and [cause] lower stock prices,” said Donovan Jones, founder of research service IPO Edge and a Seeking Alpha IPO columnist. Jones said that’s particularly bad news for companies that have yet to turn a profit – a class that includes many of 2021’s hot IPO stocks. “Generally, the higher the operating losses, the greater [the] company share price will be penalized,” he said. Dr. Jay Ritter, a University of Florida Warrington College of Business professor known as “Mr. IPO,” said the risks grew for

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Robinhood, Oatly, Honest Company lead long list of once-hot IPO stocks to hit record lows