Well, FatPipe’s IPO was pretty thicc and juicy… until it wasn’t LOL. But hey, you know you’re in for a ride when a company named FatPipe goes public and immediately doubles. I guess that’s the world we live in now.

(Source: Giphy) 

So with that, welcome to the Nasdaq debut of FatPipe Networks, the SD-WAN company no one outside of a Utah server room had heard of until this week.Shares of the Salt Lake City-based SD-WAN provider surged as much as 126% during its Nasdaq debut yesterday, only to nosedive a staggering 36% as of the time of this writing. Talk about a full-circle moment. 

Now, honestly, I fully believe that no one should have been buying this thing up 100%+ on day one. FatPipe raised just $4 million in its IPO—pocket change in the public markets. You’ve got late-stage pre-revenue AI startups raising more in convertible notes. This deal was barely large enough to cover underwriting fees, let alone signal any real institutional support. Which is to say: liquidity was thin, and this thing was always going to trade like a memecoin straight out of the gate. 

(Source: Benzinga) 

The most charitable explanation for the initial pop is that people saw “network security,” “SASE,” and “cyber” in the press release, blacked out, and clicked “buy” before realizing no one else was coming to the party. Once the sugar high wore off, and people remembered they were buying a 20-year-old company most had never heard of, the stock collapsed—because of course it did.

Now to be fair, FatPipe’s actual business isn’t a scam. They’ve got a real product, real customers, and a global reseller network. But none of that matters when you're a microcap with no float, no hype engine, and no real narrative beyond “we got on Nasdaq.” The reality is, this IPO had all the markings of a desperation listing, an attempt to raise some quick capital and maybe attract a strategic buyer down the line. Instead, it turned into a case study in how broken and stupid the current IPO market is.

(Source: Giphy) 

And with that, no amount of cybersecurity fluff was going to save them. Especially when you factor in how investors are treating the overall market like it’s radioactive waste. Meaning now, FatPipe is sitting in the broken remains of its own IPO cycle, and it’s not even 72 hours old. The stock is already down bad, and retail bagholders are waking up to the fact that this wasn’t a hot tech play, it was simply a glorified liquidity event with a decent logo.

So yeah, if you’re looking for a moral here, it’s pretty simple: don’t IPO in this market unless you absolutely have to, and don’t chase a ticker just because it’s up triple digits on day one. FatPipe didn’t scam anybody. But the IPO process? That’s another story. Aaaaand, it’s just one of the many reasons why Klarna and Stubhub have decided to “nope-out” of the entire thing, at least until the markets get their sh*t together. For now, keep your eyes on FatPipe, if nothing else for the entertainment of the name—and as always, stay safe and stay frosty, friends! Until next time…

P.S. Last week was absolutely horrific. Portfolios are down and emotions are high. But do you know who slayed the week while everyone else is panic-selling? Stocks.News premium members. Click here to join the club, and get the deepest insights and most explosive moves BEFORE everyone else. 

Stocks.News does not hold positions in companies mentioned in the article.