Another Miracle-IPO Stock Collapsed by 82% since the IPO. Wall Street Hype & Hoopla Machine Screeches to a Halt

So now we’ve got another stock that went public less than a year ago and then collapsed unceremoniously by 82%, including today’s 29% plunge upon the news last night of a minuscule…

revenue increase, a hit to revenue guidance, and another big loss. This misbegotten Wall Street Hype & Hoopla product has now taken down just about every investor that ever touched it.

For about a year now, I’ve been screaming about IPO stocks and SPAC stocks that had been hyped to the nth degree by the Wall Street Hype & Hoopla machine, and their shares were then sold to the public at huge valuations and, after a quick “pop,” promptly collapsed, one after the other.

The last time I’ve seen anything like this was during the dotcom bust. But this here feels a lot worse because it’s just the beginning and the overall indices haven’t plunged yet, though they’re down some.

So here we are with the miracle IPO of the day that collapsed in 10 months. I don’t have any problems with the company or its products. Sales of diapers, beauty products, shampoos, face masks, and whatnot, OK, fine, if the company can make money with it. But turns out, it cannot make money with it.

And this Hype & Hoopla product screwed over befuddled retail investors, who, blinded by greed and a belief in some new paradigm, eagerly ate up this hype and hoopla that they were fed, and they got what they had coming. Yup, been there, done that.

But this is pretty thick, even by Hype & Hoopla standards.

So the stock in the sickening horror-chart below is The Honest Company [HNST] since the IPO. The IPO price was $16 a share. Trading started on May 5th, 2021, and that day, the price “popped” 50% to its all-time higher of $23.88, which gave the company a valuation of $2.2 billion – for a diaper and shampoo company with $300 million in annual sales, decorated by…

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