Buy on the First Day?

GlowCart is a made-up online beauty shop that everyone at school seems to use. Today its shares start trading on the stock market for the first time, an event called an IPO. The price has jumped 40% within the first hour.

Bo makes the bull case (optimistic)

The company is popular and growing, and this is the first chance for the public to own a piece of it.
Early investors in some famous companies made a great deal of money by getting in at the start.
Excitement brings attention, and attention can bring more customers.

Bea makes the bear case (cautious)

First-day prices are often driven by excitement, not by careful study of the business.
A newly listed company has a short public track record, so there is less information to judge it by.
People who owned shares before the IPO are often allowed to sell after a waiting period, which can push the price down later.

Which case do you find more convincing?

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Buy on the First Day?

Bo makes the bull case (optimistic)

The company is popular and growing, and this is the first chance for the public to own a piece of it.
Early investors in some famous companies made a great deal of money by getting in at the start.
Excitement brings attention, and attention can bring more customers.

Bea makes the bear case (cautious)

First-day prices are often driven by excitement, not by careful study of the business.
A newly listed company has a short public track record, so there is less information to judge it by.
People who owned shares before the IPO are often allowed to sell after a waiting period, which can push the price down later.

Which case do you find more convincing?