(Bloomberg) — Investors who bought into a recent selling spree of stock offerings took the brunt of Friday’s market decline.
Many of the stocks sold in November’s $42 billion of initial public offerings and secondary offerings are getting hit with outsized losses after news of a worrisome coronavirus variant sent markets tumbling on Friday.
Recent listings that lagged the broader market on Friday include Sweetgreen Inc., Rivian Automotive Inc., Hertz Global Holdings Inc. and shoemaker Allbirds Inc. Among secondary offerings, Northern Oil and Gas Inc. and Bitcoin miner Ault Global Holdings Inc. are underperforming.
“Recent IPOs tend to be higher beta stocks, which means they will amplify broader moves in the market,” Bloomberg Intelligence analyst Gina Martin Adams said in an interview. “It’s pretty rare to see stocks at large fall during this time of the year.”
The S&P 500 closed 2.3% Friday, its biggest one-day drop since February.
The selloff’s timing is particularly unfortunate for buyers in last week’s secondary offerings, because it was the busiest week since March for such deals. The flood of offerings in publicly traded companies followed an uptick in IPOs before a narrow window for offerings closed for the holiday season. In total, buyers spent more than $42 billion on U.S. stock offerings this month.
But not every deal has been a loser. For example, stay-at-home trade Peloton Interactive Inc. on Friday climbed 5.7%, paring a decline since it raised $1.1 billion in a secondary offering on Nov. 16.
Read more: What We Know About the New Virus Variant That’s Rocking Markets
(Updates with closing prices)
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