We should not be surprised by this.
(Contrast this to the dot-com IPO, where they sell stock to cash out, not to raise money!)
But regardless of the company involved, eventually, all companies go bankrupt. There was a statistic being batted around the other day about how of all the Fortune 500 companies in 1960, only a few are still around today. People acted shocked about this, as if it were some weird anomaly. But in 50 years, most businesses - even old-school brick-and-mortar businesses - go belly-up. Companies are dynamic, not static. They come and go like the weather - they are not cast in stone.
So, you have to wonder why someone would buy stock in a company that pays no dividends, has no intention of ever paying dividends, and is something as trendy and ethereal as an Internet dot-com start-up. You can almost guarantee that eventually, down the road, the company will end up on the rocks, and the stock price will be a fraction of what it once was. And not having been paid any dividends, you will be left with nothing.
That is, unless you can buy low and sell high - to some other chump. But that is not investing, is it? It's just gambling, right?
Anyway, that's what I was thinking when I saw an abandoned factory.