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Mike Bird, reporter at The Wall Street Journal, writes that the wave of large-scale Giga-IPOs highlights deeper issues with public markets.
He points out that most IPO gains come from a handful of exceptional companies such as Amazon and Nvidia—outcomes that new public firms already valued in the trillions are unlikely to achieve.
Bird recently reported that eleven U.S. companies now have trillion-dollar market capitalizations, compared to only three such firms outside the U.S. In a separate article, he analyzed how UK supermarkets’ real estate values can exceed their overall market valuation due to thin profit margins. These observations reflect his ongoing coverage of high valuations and sector-specific financial pressures.