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 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 SNAP: -21 percent.
• Facebook Inc FB: -11 percent.
• Twitter, Inc. TWTR: -24 percent.
• Alibaba Group Holding Ltd BABA: +1 percent.
• Twilio Inc TWLO: +1 percent.
• Visa Inc V: -4 percent.
• Square Inc SQ: -7 percent.
• Fitbit Inc FIT: -13 percent.
• LendingClub Corp 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.