10 IPOs that Flopped

Published October 4, 2021 at 10:10 am EDT Updated September 7, 2026 at 1:36 pm EDT

In this article we discuss the 10 IPOs that flopped.

The blockbuster initial public offerings (IPOs) of technology companies in the past few months have led to fears of a tech bubble on Wall Street, with legendary investors like Michael Burry of Scion Asset Management warning of a “mother of all crashes” due in part to soaring valuations and weak fundamentals. Due to the retail investor frenzy into growth firms since March 2020, several companies have debuted to multi-billion dollar valuations. So far in 2021, IPOs in the US have generated $171 billion, beating the all-time record of $168 billion set in 2020.

The average one-day gain for IPOs this year so far has been more than 40%, a giant leap compared to the average gains of 28% and 21% in 2020 and 2019 respectively. According to financial intelligence platform Dealogic, IPO proceeds in the second quarter of the year were close to $24 billion. Investment bankers have projected that the total annual IPO proceeds this year could touch $300 billion. Investments into special purpose acquisition companies, a popular method of going public, have also increased dramatically during the past year.

In the midst of this ‘IPO boom’, investors should reflect on the situation and get back to basics to evaluate the growth potential that some of these new companies offer, pushing all the social media hype around them to the side. Mario Gabelli of GAMCO Investors, one of the most famous value investors in the world, has recently warned of the great variance in SPAC-facilitated IPOs. Indeed, some of the fears around the IPO craze have been realized amid a Chinese government crackdown against dual-listed firms.

A lot of stock experts have also compared the present tech boom to the dotcom bubble. In 1999, just before the dotcom bubble burst, it was the busiest year for IPOs. However, 2020 beat that record. 2021 is so far on track to surpass the numbers of 2020. The dotcom bust lead to a grand correction in the value of technology stocks. Growth investors like Cathie Wood of ARK Investment Management have dismissed these comparisons. In an interview to news platform CNBC, she said the market “could not be further away from a bubble”.

However, concerns around the valuations of tech firms persist. Tech firms now dominate the S&P 500 and five of the largest represent 20% of the entire index. These concerns have also led to more scrutiny around some IPOs that have flopped over the past three years so investors can position themselves against a bubble. Some of the most high-profile technology IPOs that flopped in the recent past include Zynga Inc. (NASDAQ: ZNGA), GoHealth, Inc. (NASDAQ:GOCO), and Sogou Inc. (NYSE:SOGO), among others discussed in detail below.

Tech-enabled disruption has also had an impact on the world of finance. The rise of crypto and fintech are prime examples. The new technologies have transformed how markets function and ushered in a new generation of investors into the field. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Our Methodology

With this context in mind, here is our list of the 10 IPOs that flopped. The share price of each firm, as of September 21, along with the price of the stock at the IPO, are listed alongside other details for further clarity.

The hedge fund sentiment around each firm was gauged using data of 873 hedge funds tracked by Insider Monkey. The analyst ratings of each firm are also discussed to provide readers with more context for their investment choices.

IPOs that Flopped

10. Tintri, Inc. (OTC:TNTRQ)

Number of Hedge Fund Holders: N/A

Share Price on September 21: N/A

IPO Price: $7 per share

Tintri, Inc. (OTC:TNTRQ) is placed tenth on our list of 10 IPOs that flopped. The company operates from California as a software firm.

Tintri, Inc. filed for bankruptcy relief in 2018, merely a year after it debuted on the stock market. Subsequently, the firm announced that it was seeking a loan from TriplePoint Capital and hiring a restructuring officer.

In September 2018, privately-held data storage firm DataDirect Networks purchased Tintri, Inc. in a deal worth $60 million. The company had traded on the NASDAQ market under the symbol TNTR.

Just like Zynga Inc., GoHealth, Inc., and Sogou Inc., Tintri, Inc. is also one of the firms that is yet to fulfill the potential investors hoped it would during the initial public offering.

9. Super League Gaming, Inc. (NASDAQ:SLGG)

Number of Hedge Fund Holders: 3

Share Price on September 21: $3.29

IPO Price: $11 per share

Super League Gaming, Inc. (NASDAQ:SLGG) is ranked ninth on our list of 10 IPOs that flopped. The firm owns and runs an esports and video gaming platform. It is headquartered in California. In 2019, when the firm debuted on the stock market, it raised $25 million from an initial public offering. However, in the opening round, the reception around the IPO wasn’t great, with the share price declining from $11 per share to $9.64 per share – a decrease of over 12%.

In May, investment advisory HC Wainwright initiated coverage of Super League Gaming, Inc. stock with a Buy rating and a price target of $6, highlighting that the firm was an emerging player in the fast-growing esports sector.

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Super League Gaming, Inc. with 1 million shares worth more than $5 million.

In addition to Zynga Inc., GoHealth, Inc., and Sogou Inc., Super League Gaming, Inc. is also one of the stocks that had a blockbuster IPO but has since failed to register impressive growth numbers.

8. Casper Sleep Inc. (NYSE:CSPR)

Number of Hedge Fund Holders: 11

Share Price on September 21: $4.85

IPO Price: $12 per share

Casper Sleep Inc. (NYSE:CSPR) is a New York-based firm that makes and sells sleep products. It is placed eighth on our list of 10 IPOs that flopped. In early 2020, the firm raised $100 million in an initial public offering that was priced at the bottom of a price range – $12 per share – already lowered earlier. The firm, which was valued at around $470 million because of the cool reception to an IPO priced at $17-$18 per share, had fetched a valuation of more than $1 billion at a private fundraising round in 2019.

On July 14, investment advisory Goldman Sachs initiated coverage of Casper Sleep Inc. stock with a Sell rating and a price target of $7, noting “fading” brand momentum for the firm and limited evidence of pricing power.

At the end of the second quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $17 million in Casper Sleep Inc., down from 13 in the preceding quarter worth $14 million.

7. Root, Inc. (NASDAQ:ROOT)

Number of Hedge Fund Holders: 18

Share Price on September 21: $5.80

IPO Price: $27 per share

Root, Inc. (NASDAQ:ROOT) is an Ohio-based company that provides insurance products and services. It is ranked seventh on our list of 10 IPOs that flopped. The share price of the firm has fallen significantly since the IPO, much to the dismay of those who invested in the high-priced IPO. In February this year, the stock plunged 40% after the company reported a 50% decline in revenue and a 56% increase in net losses for the fourth quarter of 2020.

On August 19, investment advisory Morgan Stanley reiterated an Equal Weight rating on Root, Inc. stock but lowered the price target to $7 from $14. Michael Phillips, an analyst at the advisory, issued the ratings update.

Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Silver Lake Partners is a leading shareholder in Root, Inc. with 9.2 million shares worth more than $100 million.

6. SmileDirectClub, Inc. (NASDAQ:SDC)

Number of Hedge Fund Holders: 19

Share Price on September 21: $6.49

IPO Price: $23 per share

SmileDirectClub, Inc. (NASDAQ:SDC) is placed sixth on our list of 10 IPOs that flopped. The firm operates in the oral care industry and is headquartered in Tennessee. In 2019, when the firm went public, it priced the IPO at $23 per share, above a proposed range of $19-$22 speculated earlier. However, the price was not well received in the market, falling almost 27% on the first dat of trading to around $17 per share.

On September 20, investment advisory Stifel downgraded SmileDirectClub, Inc. stock to Hold from Buy and lowered the price target to $7 from $9, underlining that the firm was facing more headwinds than tailwinds.

At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $135 million in SmileDirectClub, Inc., down from 21 in the preceding quarter worth $177 million.

Zynga Inc., GoHealth, Inc., and Sogou Inc. are some of the stocks that have still yet to justify their IPO earnings to investors, along with SmileDirectClub, Inc..

5. ContextLogic Inc. (NASDAQ:WISH)

Number of Hedge Fund Holders: 21

Share Price on September 21: $6.07

IPO Price: $24 per share

ContextLogic Inc. (NASDAQ:WISH) is ranked fifth on our list of 10 IPOs that flopped. The firm owns and operates a mobile ecommerce platform and is headquartered in California. In late 2020, the company debuted on the stock market and raised more than $1 billion with a $24 per share price. However, in the following two days, the share price dropped drastically, sinking almost 16% and hovering around $19 at one point, before rebounding slightly. The shares plunged in value further over the past few months.

On August 23, investment advisory Citi maintained a Neutral rating on ContextLogic Inc. stock but lowered the price target to $7.50 from $12, noting that the firm was having difficulty sustaining growth due to higher user churn and elevated ad rates.

Out of the hedge funds being tracked by Insider Monkey, New York-based firm JS Capital is a leading shareholder in ContextLogic Inc. with 1.8 million shares worth more than $24 million.

4. Sogou Inc. (NYSE:SOGO)

Number of Hedge Fund Holders: 19

Share Price on September 21: $8.90

IPO Price: $13 per share

Sogou Inc. is a China-based firm that markets internet search and related services. It is placed fourth on our list of 10 IPOs that flopped. In 2017, the firm debuted on the stock priced at $13 per share, raising more than $585 million at the IPO. However, in the following months, the stock slumped in value and did not reach the IPO price again until June 2018. The shares are still trading below the IPO price.

In earnings results for the second quarter, posted on August 9, Sogou Inc. reported earnings per share of $0.11 and a revenue of $147 million, down more than 43% from the revenue over the same period last year,

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Sogou Inc. with 2.9 million shares worth more than $25 million.

3. Lucira Health, Inc. (NASDAQ:LHDX)

Number of Hedge Fund Holders: 6

Share Price on September 21: $7.31

IPO Price: $17 per share

Lucira Health, Inc. (NASDAQ:LHDX) is a California-based firm medical technology company that makes and sells infectious diseases test kits. It is ranked third on our list of 10 IPOs that flopped. In early 2021, the firm went public, raising $153 million through an offering priced at $17 per share, above a proposed price of $16 per share. The stock has fallen more than 50% in value since the IPO.

In May, investment advisory William Blair downgraded Lucira Health, Inc. stock to Market Perform from Outperform without a price target. Brian Weinstein, an analyst at the advisory, issued the ratings update.

At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $6 million in Lucira Health, Inc., down from 8 in the preceding quarter worth $12 million.

2. Zynga Inc. (NASDAQ: ZNGA)

Number of Hedge Fund Holders: 49

Share Price on September 21: $7.64

IPO Price: $10 per share

Zynga Inc. is a game developer that concentrates on marketing of social game services. It is ranked second on our list of 10 IPOs that flopped. The company went public in 2011 and priced the IPO at the top end of a proposed range of $8-$10. It was the biggest IPO since Google in 2004 and raised $1 billion for the firm. However, immediately after the IPO, the share price plunged, incrementally falling and has not recovered since. It is still trading below the IPO price.

On May 6, investment advisory Bank of America upgraded Zynga Inc. stock to Buy from Neutral with a price target of $13.5. The shares of the social gaming company soared by 6% after the ratings update.

At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Zynga Inc., up from 47 in the previous quarter worth $1.1 billion.

In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Zynga Inc. (NASDAQ: ZNGA) was one of them. Here is what the fund said:

“We also added to our position in Zynga. Our multiyear investment campaign in Zynga has been based on a new management team’s ability to drive steady growth in the company’s base portfolio of games, expand margins, reinvigorate the new game development pipeline and use its strong balance sheet to acquire complementary games and studios. Shares have been pressured in recent quarters, presumably because of investor concerns about the company’s moderating growth rate and Apple’s pending new privacy policy which will make it more difficult for Zynga to both efficiently acquire new players and sell advertising in its games. We believe the company has multiple growth levers it can pull in the periods ahead, including the rollout of new games, acquisitions, further penetration into international markets and entry into new gaming categories, to name a few. Furthermore, our research suggests the Apple privacy policy change is manageable for larger mobile game developers such as Zynga. Given our strong conviction in the profit cycle, we used recent weakness to add to our position.”

1. GoHealth, Inc. (NASDAQ:GOCO)

Number of Hedge Fund Holders: 14

Share Price on September 21: $5.35

IPO Price: $21 per share

GoHealth, Inc. is ranked first on our list of 10 IPOs that flopped. The firm owns and operates a digital health insurance marketplace and is headquartered in Chicago. The firm raised $914 million in an IPO priced at $21 per share, one of the priciest health IPOs in history. However, the shares have fallen rapidly in value since, and are presently trading at close to 75% below the IPO price.

On August 12, investment advisory Raymond James downgraded GoHealth, Inc. stock to Market Perform from Outperform, underlining that the firm had missed market estimates on earnings in the results for the quarter ended June 2021.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Centerbridge Partners is a leading shareholder in GoHealth, Inc. with 40 million shares worth more than $456 million.

You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.

Follow Insider Monkey on Twitter