Private company valuations are ‘going nuts again,’ Cisco CEO says
Cisco CEO Chuck Robbins participates at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2023.
Hollie Adams | Bloomberg | Getty Images
The valuations of some private companies are ‘going nuts again,’ according to Cisco‘s chief executive.
Chuck Robbins said the valuations for companies focusing on new technologies, such as artificial intelligence (AI), had returned to the heyday seen during the low interest rate environment of the pandemic.
“When you get into [generative] AI and some of these other things, we are seeing some of the private valuations are going nuts again,” he said during a CNBC-moderated panel event at the World Economic Forum in Davos, Switzerland.
“It is ironic to me that we’re so quickly doing this after what we experienced 48 months ago. It’s just incredible,” he said.
— Karen Gilchrist
IPO market might open back up in the second quarter, says Nasdaq CEO
Adena Friedman, CEO of Nasdaq, at the WEF in Davos, Switzerland on May 24th, 2022.
Adam Galica | CNBC
Adena Friedman, chair and CEO of Nasdaq, said the market for Initial Public Offerings (IPOs) could “open back up again” as investors gain confidence in the second half of the year.
“What happens in the markets — as a result of this notion that there could be a lower cost of capital as we go through the year — is that investors can start to think about how they model company earnings again,” she said, speaking on a CNBC-moderated panel.
While last year’s market performance was “top heavy,” the broader market including small cap companies are starting to see improved valuations, Friedman added.
“They know that the cost of capital is likely to be stable to lower going forward, and I think that will also drive an interest in investors wanting to put risk capital to work which means IPOs … we could actually have an IPO market open back up again,” she said.
Around 85 companies have filed to go public on Nasdaq which want to go…
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