The digital-health and advertising-technology sectors share a rich history of IPO disappointment, making this week’s planned debuts of physical therapy platform Hinge Health Inc. and TV ad software firm MNTN Inc. a test of whether the nascent recovery in the US first-time share sale market can keep going.
Former initial public offering darlings such as SmileDirectClub, which shut down in 2023 after shares collapsed, and Teladoc Health Inc., whose stock is trading nearly two thirds below its listing price, offer cautionary tales. These wipeouts show the difficulty of technology startups aiming to make health-care cheaper and more efficient winning over investors. In the adtech sector, only a few companies — most notably Trade Desk Inc. — have found lasting success in a digital advertising landscape dominated by Alphabet Inc.’s Google.