Square - First take a bath, then blow bubbles

Nemo's Dory - Boundless optimism, no memory. Essential characteristics for the Bubbletime

Today was Square IPO's, after re-valuing its business from $15 to $9 a share. As of 3 pm on Day 1 its trading at about 40% above $9, and the Silicon Valley press is positively bubbling over in praise

"Hang on" I hear you ask "didn't they just take a massive haircut last week to go out the gate? They were valued at $15+ last round, that's at least 70% above $9?"

You are right, dear reader, but this is Silicon Valley in the Bubbletime, and that de-valuation was so last week. What is important is that an IPO must "pop" up bigtime, so the hype machine can crank up to full volume. Details like the above de-valuation are forgotten, Dory-fish like, in the great game of finding Alpha

Given that most Unicorns are way overvalued (the rest are just overvalued), for the bubbling to continue, first must come the bath. Of course, this screws the employees and later investors without ratchets and preference shares, but hey that's the breaks, right?

Update - Bloomberg reports that everyone made money but for the Series D (late, un-ratcheted) its a close call - and they put in the largest lump of the money (40% +) pre IPO - probably not unique to this Unicorn