The new year has only just roared into full motion, but stock exchanges across the world are already reveling at the impressive performance global markets are putting in. In New York, in particular, where stock markets have recently soared to record highs, analyst and investors everywhere are greedy for more, and are wondering what big IPOs will take 2018 by storm.
Increasingly, smart analysts are turning to Asia when it comes to predicting where the hottest forthcoming IPOs will from. There are many reasons to believe that, regardless of the current heyday New York markets are experiencing, Asian tech IPOs in particular stand to undercut today’s booming American market and shift the focus towards the East.
New Focus On Asia
It’s not unfair to say that analyst and investors with extra cash in their pocket are looking to Asia more so than European or American markets when it comes to determining their future investments. Asian tech IPOs in particular stand to add some serious competition to a tech market that’s often dominated by American behemoths like Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), and there are many reasons to believe 2018 will be the year these IPOs break waves in the marketplace.
A forthcoming ‘supercycle’ of tech-based IPOs, for instance, will make 2018 a year to remember when it comes to pioneering new digital technologies. Chinese giants like Tencent will be rapidly churning out new IPOs as rapidly as possible, particularly as consumer demands for digital devices in the South East Asian region continues to grow. As a new Asian middle class springs forth in the Far East, expect these new consumers to buoy a wave of tech IPOs that stands to challenge Silicon Valley’s current dominance when it comes to all things tech.
Current concerns that emerging tech trends in Asia in general and China in particular will upend existing tech markets are largely well-founded; while there’s little reason to believe that American or European stock markets will find themselves desperate for cash by the end of the new year, it’s undeniable that Asian markets are increasingly getting larger slices of global media attention and revenue, and that they’ll leverage it for greater success.
Two tech giants in particular seem anxious to make current western fears of Asian tech usurpation a reality; Alibaba (NYSE:BABA) and Tencent Holdings Ltd ADR (OTC:TCEHY) are already garnering countless headlines thanks to their dedicated investment in forthcoming fields like automation and machine learning. As these billion dollar behemoths continue to swell in financial size and statue, leveraging not only the growing Chinese economy but also the powers of the Chinese state with which they’re highly interconnected, the amount of tech IPOs they back will only grow.
Prepare For A Financial fight
Western markets in general and New York specifically won’t give up their current position at the top of the financial leaderboards without a fight, however. With the American economy roaring and untold thousands of tech jobs coming down the conveyer belt, American tech IPOs will doubtlessly remain plentiful and lucrative themselves. A Recent announcement by Apple (NASDAQ:AAPL), for instance, show that established tech companies still have their sights on Western markets, and are prepared to funnel billions towards maintaining their financial dominance.
That isn’t necessarily a good thing for New York, however; American tech companies, including your typical New Mexico LLC, have a massive stranglehold on the market, and may be stifling new competition. Companies that grow too large could eventually form a market environment where tech-based IPOs struggle to find any attention or capital for themselves, and more needs to be done to ensure New York stocks remain competitive in the future. As long as the US economy keeps booming, however, savvy investors should expect more tech IPOs to hit the market in 2018.
Ultimately, the battle between Tencent and Alibaba to become the leader of Asian tech IPOs could make 2018 the year New York is grossly undercut on the market, but wise analyst will understand that the NYSE isn’t going anywhere anytime soon. Much in the same way that competition is fueling a massive investment and innovation battle between Alibaba and Tencent, existing rivalries between US tech companies like Alphabet, Facebook (NASDAQ:FB), and others will also ensure a high level of investor interest in the tech scene for years to come. Regardless of the tech IPO fever that’s currently engulfing Asia, New York markets stand to have a bountiful 2018. Investors in the Big Apple should keep their eyes on the near future, however, as recent developments in the Chinese economy show that Asian tech IPOs in particular will have a good year as well. New York may not be entirely undercut in 2018, but for the first time in many decades, it will face some much-needed competition from its Eastern peers.