This has been a brutal month for some of the hottest stocks on the market.

Lyft has had an absolutely abysmal month following their IPO debut, while Uber has been having significant troubles of their own. To make matters worse, Pinterest has released a quarterly report which sent shares in the company down after everyone realized how underwhelming the quarter has actually been. All of this is quite curious; why are such hot IPOs failing to produce results right now?

The American IPO market has been inundated with plenty of high-profile debuts this year. These debuts have come from companies of all sizes, but one theme that is uniting them is a failure to launch. Many of these IPOs have fallen through during their first few days of public trading.

2019 has been packed full of promising IPOs from serious companies which have the potential to disrupt modern industries and change the world. There are still certainly many who are making a killing, but the broader trend has been a market which has been forced to absorb flop after flop. This has contributed to a decline in investor wealth and a tone of pessimism for the many IPOs that are still to come.

Various analysts and investment advisers are currently pointing to two factors to explain all the recent news. The first factor is a trend which has seen so many companies fail to provide viable paths to profitability. In fact, approximately 80% of IPOs launched in 2018 were not profitable at the time. The other factor is an uncertain economic situation which has become the norm for many different reasons, the main reasons being a changing technological atmosphere and an escalating trade war between the world’s two largest economies, though even these two factors fail to explain everything on their own.