One of 2017’s hottest IPOs, Canada Goose Holdings Inc. Subordinate Voting Shares (NYSE: GOOS), reported its first quarterly earnings report as a public company on June 2, blowing the market away with a big earnings beat.
Despite a run post-earnings, shares are down 3.0 percent on Monday.
Related Link: PETA Buys Canada Goose Stock, Plans To Push For An End To Use Of Real Fur
Uber, Palantir, Spotify and Dropbox are just a few of the big-name companies whose names are being batted around as possible 2017 IPO candidates.
But while these high-profile companies have a lot to offer in terms of growth and excitement, some of the most highly-anticipated IPOs in recent years haven’t exactly come out of the gates strong. In fact, the first earnings report has been a complete disaster for several of these companies, as IPO fever has gotten investor expectations out of line with reality.
Here’s a look at how some of the hottest IPO stocks of the past few years have reacted to their first quarterly earnings report as a public company:
- Snap Inc (NYSE: SNAP): -21 percent.
- Facebook Inc (NASDAQ: FB): -11 percent.
- Twitter, Inc.
(NYSE: TWTR): -24 percent.
- Alibaba Group Holding Ltd (NYSE: BABA): +1 percent.
- Twilio Inc (NYSE: TWLO): +1 percent.
- Visa Inc (NYSE: V): -4 percent.
- Square Inc (NYSE: SQ): -7 percent.
- Fitbit Inc (NYSE: FIT): -13 percent.
- LendingClub Corp (NYSE: LC): -14 percent.
Based on the numbers above, is seems Canada Goose is a rare exception to the rule that high-profile IPOs tend to react negatively to their first earnings report.
IPO investors should take note of the trend the next time they are considering holding a big-name IPO stock into earnings.
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