BigCommerce (BIGC) and Rackspace (RXT) notched the year's best and worst first-day performances on Wednesday. IPO investors continue to pay up for high-quality, high-gross margin growth, awarding e-commerce platform BigCommerce a premium multiple to its peer median. On the other hand, Rackspace is highly leveraged and has relied on acquisitions for growth.
After the first day, however, the year's other four top performers have averaged a return of -26% in aftermarket trading, whereas the year's worst first-day performers have averaged a return of 31% after day one.
