All Shook Up

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Here’s another fine example of how IPO mania can drive a stock up to prices that have simply no basis in reality: Shake Shack exploded to nearly $100 per share after its IPO. Since then, it’s lost about a third of its value. Remember, this is in the context of a market at lifetime highs. You don’t have to imagine very hard what sell-side analysis were saying to customers as the stock approaching triple digits. Hint: it wasn’t “sell here.”