OG - Should You Buy Onion Global After Its Busted IPO?
Onion Global (NYSE: OG) has been one of the worst tech IPOs of 2021. The Chinese e-commerce company went public at $7.25 per share in early May, closed at $7 on the first day, and is now only worth about $3.80.
Investors' turn from growth to value stocks amid inflation fears and a focus on reopening plays this year, regulatory headwinds for Chinese stocks in both China and the U.S., and the previous failures of other small Chinese e-commerce companies all cast a dark cloud over Onion's IPO. A disappointing earnings report earlier this month exacerbated that pressure.
But at its current market cap of a meager $340 million, Onion trades at less than one times last year's sales. Are investors too skeptical about Onion's prospects, or should they continue to avoid this busted IPO?
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Should You Buy Onion Global After Its Busted IPO?