Tech stocks have sunk near bear market territory, which is likely to put IPO plans on hold for many companies that might have been thinking about testing Wall Street this year.
The Nasdaq composite index, traditionally considered a good barometer of the direction of the tech sector, finished Monday down by about 18 percent from its highs of last August. That puts it within 2 percentage points of the 20-percent drop that is considered the mark of a bear market.
The formula for a successful IPO, after the first market correction late last summer, was considered to be a roadshow pitch that included profitabllity — or a clear path to it — along with strong growth.
But neither shining example of that — San Francisco-based Fitbit Inc. nor Atlassian Corp. Plc — are sitting pretty at the moment.
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