Analyst Who Called WeWork Debacle Sees Risks in Direct Listings

For venture capitalists, direct listings are an ideal way to go public. For everyone else, there are hazards.

That’s the warning from Triton Research Inc. CEO Rett Wallace, who specializes in research on newly minted stocks and was an early voice of caution on The We Co. IPO. Venture capitalists who tout the benefits of direct listings don’t want you to weigh additional costs that await other shareholders, he said in an interview.

“The only legitimate selling point of direct listings is the lack of lockups,” he said. “That’s great if you’re a venture capitalist and you want liquidity ...