By Luanne Teoh on 08-11-2011

The recent volatility in the stock market since August 4th and credit downgrade of the U.S Treasury by Standard and Poor on August 6th has caused swift sell-offs on the stock exchanges on Monday morning the 8th — the first day of trading since the credit downgrade.

Since then, according to a weekly IPO chart maintained by Renaissance Capital, there have been IPO delays as six of the 12 companies expected to price their initial public offerings (IPOs) this week have decided to postpone their stock market debut. Two out of the six delayed IPOs are technology focused — InvenSense and Cathay Industrial Biotech. Another technology based company is Tudou (online video giant from China) with its IPO planned for August 15th.

Other newly listed technology based stocks like Pandora, LinkedIn and Zillow also showed decline with LinkedIn taking a double-digit fall during Monday’s trading.

According to GigaOM “Internet radio company Pandora’s stock was down 7.5 percent as of noon ET Monday, while real estate website Zillow showed a 6.5 percent decline. Professional social network company LinkedIn has been probably the most warmly welcomed company to the stock market since its IPO in May, but it was also one of the hardest hit in Monday’s sell off. LinkedIn stock was down nearly 11 percent as of noon ET Monday, trading at around $80 per share.”

However, on the other side of the ring, Renaissance Capital’s blog post states that current technology stocks (and the delayed IPOs) are still well poised in the market.

“Technology has been the most popular sector for the US IPO market, representing 30% of deals priced over the last 12 months, and has also accounted for some of the most successful deals (e.g. LinkedIn (LNKD, +79% from IPO), ServiceSource (SREV, +64%), Zillow (Z, +31%) and Fusion-io (FIO, +31%). Carbonite, InvenSense and Trustwave look to extend this trend of success, holding solid track records and positioned in growing markets. With the financial crisis dampening broader investor interest in IPOs, these tech deals could potentially be diamonds in the rough.”

If the current market over the last few days is of any indication, will the highly anticipated Groupon and Zynga suffer the same fate when it makes its market debut?  Also, will Tudou postpone its IPO on August 15?

Chart Source: Renaissance Capital

About Luanne Teoh

Luanne is a senior correspondent for BizTechDay focused on Small Business Tech, Mobile and China based in San Francisco. In the last 17 years, she has helped launch start-ups and turned around failing operations. Her international work experience include both public and private corporations in Southeast Asia, Australia and North America. She has previously worked for Oracle Corporation, SonyBMG Music, Universal Music, Catcha Media and SOH Inc. Apart from a keen interest in technology, Luanne is also and avid explorer of the globe, cultures and people.

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