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Considering High-Profile IPOs: How Do These Stocks Trade The Day After Their First Earnings Report?

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Considering High-Profile IPOs: How Do These Stocks Trade The Day After Their First Earnings Report?

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

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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.

Posted-In: News IPOs Movers Trading Ideas General Best of Benzinga

 

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