Tudou (TUDO) IPO Failure Proves the 'X of China' Bubble is Dead
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Further illustrating the bursting of the "X of China" bubble, the IPO for Tudou (Nasdaq: TUDO), dubbed the "YouTube of China", flopped Wednesday in its IPO debut despite much hype.
After pricing at $29, the middle of its expected $28-$30 range, shares opened for trading on the NASDAQ at $25.11, down about 13 percent.
With the runaway success of Baidu (Nasdaq: BIDU), the "Google of China", the last year brought a host of Chinese companies to the U.S. market trying to imitate its success. There was E-Commerce China Dangdang Inc. (Nasdaq: DANG), the "Amazon of China"; Youku.com Inc (Nasdaq: YOKU), the other "YouTube of China"; and Renren (Nasdaq: RENN), the "Facebook of China," to name a few. All but Youku.com are well below the IPO prices and sharply off post-IPO highs.
The IPO market has been admittedly weak over the past few weeks due to the recent market turmoil. However, Tudou had a clean slate to work with as the only IPO on the docket this week. Last week there were a ton of cancellations and only two deals came to the market.
Tudou's failure tells any China wannabe to leave the U.S. market alone... we have enough of your stench.
After pricing at $29, the middle of its expected $28-$30 range, shares opened for trading on the NASDAQ at $25.11, down about 13 percent.
With the runaway success of Baidu (Nasdaq: BIDU), the "Google of China", the last year brought a host of Chinese companies to the U.S. market trying to imitate its success. There was E-Commerce China Dangdang Inc. (Nasdaq: DANG), the "Amazon of China"; Youku.com Inc (Nasdaq: YOKU), the other "YouTube of China"; and Renren (Nasdaq: RENN), the "Facebook of China," to name a few. All but Youku.com are well below the IPO prices and sharply off post-IPO highs.
The IPO market has been admittedly weak over the past few weeks due to the recent market turmoil. However, Tudou had a clean slate to work with as the only IPO on the docket this week. Last week there were a ton of cancellations and only two deals came to the market.
Tudou's failure tells any China wannabe to leave the U.S. market alone... we have enough of your stench.
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