The Shake Shack IPO

Shares of Shake Shack ($SHAK) debuted on the market last week. The shares were priced at $21 and opened at $47. At one point, SHAK got as high as $52 per share.

Investors often ask me about high-profile IPOs and I almost always encourage investors to avoid them. Remember that companies only go public if they think they can get a good price, so their interests are directly opposed to yours.

It’s no surprise that most studies show that IPOs don’t perform well. A few big winners got all the attention.

I honestly don’t see how Shake Shack is worth half this price.

Posted by Eddy Elfenbein on February 2nd, 2015 at 5:18 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.