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Recent IPO frenzy is 'unsustainable' and could end in 'many accidents,' CEO of world's largest asset manager says

Recent IPO frenzy is 'unsustainable' and could end in 'many accidents,' CEO of world's largest asset manager says

FILE PHOTO: Larry Fink, Chief Executive Officer of BlackRock, stands at the Bloomberg Global Business forum in New York
Reuters



The recent frenzy for IPOs is "unsustainable" and could end in "many accidents," BlackRock's CEO Larry Fink said at a fintech conference, according to Bloomberg.



The comments from Fink come days after the impressive public trading debuts of DoorDash and Airbnb, which both surged in their first day of trades.



The Renaissance IPO ETF, which owns a basket of recent US-listed IPOs, is up 111% year-to-date, far outpacing the S&P 500's year-to-date gain of 13%.



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The flurry of high-flying IPOs in 2020 is "unsustainable" and could ultimately end in "many accidents," according to BlackRock CEO Larry Fink.Fink made the comments at a virtual fintech conference, Bloomberg reported.He urging caution to investors who may feel gravitated to the excitement of recent IPO launches, saying, "The question is: Is the market pricing in too large of a forward growth rate for these companies?"Recent IPO's from DoorDash and Airbnb have highlighted the level of investor euphoria given their soaring stock prices in initial trades.
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