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Client: Avoid the Dip from IPO Lockups

Avoid the Dip: The Effect of Lockup on Stock Price is a new infographic InfoNewt designed for Wealthfront.

A flood tide of shares is hitting the market in May and June, as a number of the high-profile tech IPOs from the fall emerge from lockup periods, including Jive Software (JIVE), Zynga (ZNGA) and Angie’s List (ANGI).

If you’re one of the employees of the 28 companies whose lockups are expiring in May or June, you’re wondering how to diversify your portfolio and when to sell.

Here’s our research on the question of what to do in the days immediately following the lockup expiration, presented visually to help you see the dip that typically follows the end of the lockup.*

As valuable financial information to many employees of the tech companies going IPO this year, Wealthfront looked back at 254 prior technology company IPOs to chart “The Dip” that consistently have a price dip the first day after the Lockup ends.

Don’t understand what a Lockup is?  That’s explained in the infographic as well.

Thanks to the team at Wealthfront!