Zerodha CEO Nithin Kamath, known for posting educational comments related to stock markets and trading on social media platforms, on Friday took to Twitter to share a “weird” trend he observed in the stock market.
“While listed high growth, yet to be profitable startups are seeing sharp drops, private market valuations are somehow still holding up,” said Kamath.
“Weird times we live in. Btw if there was a way to short private companies, I think there are a few pair trades—shorting private & buying listed,” he added.
Along with this, Kamath shared a chart that depicts the performance of fintech IPOs.
This comes a day after the Zerodha CEO said that he thinks one of the biggest Indian fintech opportunities is advisory to help Indians manage their personal finances better—investments, insurance etc.
He said that for this to happen, the account aggregator will have to do what UPI did for payments. Hoping all banks, depositories, & RTAs will be on AA.
Earlier, Kamath had expressed fear regarding the sharp drops in stock prices of listed new-age technology companies around the globe. According to Kamath, only a small percentage of technology firms have been able to recover the losses.
In a series of tweets, the Zerodha head advised the new-age tech firms to ‘prioritize lower volatility long term versus max short term gain,’ while making a growth forecast.
Nithin Kamath said that the networth of the core teams in most new-age businesses is tied to ESOPs, and added that “The more a company tries to talk price up in short term, the higher the odds of large drops & volatility in the long term”.