5 IPOs Prove Tech Is Alive and Well
There may be plenty of people snuggled up in solid income stocks, but there is a growing market for new tech firms that are listing and launching.
High-Tech IPO No. 5: Amberella Matches SolarCity
Talk about a growth market. Ambarella (NASDAQ:AMBA) has its hooks in the fast-paced world of digital video at a time when millions are going online to watch everything from short clips to feature films.
Ambarella is a leading provider of low-power, high-definition video compression and image-processing solutions. Its products are used in a variety of HD cameras. These cover cameras for security, automotive video, wearable sports devices, and digital still pictures. At the same time, the firm's technology is used in television broadcasting systems, with video content encoded and transmitted to audiences around the world.
Let me close by noting that a Web-related IPO finished just short of ranking in the top five of fourth-quarter tech IPOs. It's Shutterstock (NYSE:SSTK), which runs an online market for stock photos. Since going public on October 11, the stock is up roughly 45%. Then again, the firm has received buzz in everything from Reuters to the Wall Street Journal.
The Impact of Successful High-Tech IPOs
The success of these high-tech IPOs is vital to the entire investment world for two big reasons.
First of all, the current bull market is entering its fourth year. It is a period when stock returns tend to fizzle, as the bulls decide to take profits and sit on their gains. Simply put, to keep it all going it takes fresh inflows of cash to keep the hopes of strong market gains alive.
And that brings up point No. 2: The new ideas embedded in tech stocks serve as a lure for the fresh capital that will continue to drive the bull market forward. See, the Fed can print all the money it wants to, but without new wares to ply, Wall Street's money train just runs out of steam.
That's why successful high-tech IPOs are so important to the market. Judging by how well these five have done, you can expect this market will keep moving forward in 2013.Editor's Note: This article was written by Michael A. Robinson of Money Map Report.
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