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Oura called off their IPO just hours before they were meant to price shares—but Wall Street experts aren't buying their reason for the delay.

Fortune senior finance reporter Morgan Chittum breaks down the valuation concerns, an insider cash-out, and an Apple-size competitive threat that may have given investors pause.

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Transcript
00:00Aura was hours away from pricing its IPO. Then the smart ring maker called the entire thing off.
00:05The company blamed uncertainty in the market, but Wall Street experts aren't convinced that
00:10that's the entire story. Analysts I spoke to were concerned about the valuation for Aura.
00:16They said investors have a long memory and could be comparing Aura to other single product consumer
00:23hardware companies. Think GoPro or Peloton. Those companies also had lofty, optimistic projections,
00:30but their stocks ultimately plummeted since then. Another big reason is competition. Aura could be
00:36going up against these massive tech companies. Think Apple and Google in the wearables market.
00:42Apple doesn't have a smart ring on the market yet, but if it did, analysts told me that it could
00:47potentially make Aura's business non-existent. In terms of what's next, CEO Tom Hale has said the
00:53company has, quote, the luxury of choosing its moment when it comes to going public. He has said
00:58that the company is extremely profitable, demand is great, that they're in a great position. But when
01:04I reached out to the company for comment, they declined to say when their IPO plans would actually
01:09continue. For more on Aura, you can check out my full article on fortune.com.

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