Many people think a big-named IPO is a sure-fire way to make money. However, Uber, Lyft, SNAP and Twitter are a few reminders that just because something is widely known and widely used doesn't necessarily mean that it goes off with a bang.

If underwriters of the IPO have done their job correctly, then they're getting the companies the most money they can in the pre-IPO stage before setting the price. So when the IPO comes out, it's overvalued and therefore speculative/high-risk.