Two newly founded public companies have reported their earnings on Thursday. And results are even worse than previously expected. The market has never been too optimistic about Snapchat and Blue Apron, whose shares demonstrated negative price action since the very moment of initial public offerings.
Blue Apron has delivered its first earnings before the opening bell yesterday and surprised the investors with figures that have managed to disappoint even the most conservative investors. According to the report, the company is currently losing 47 cents a share. Most investors expected the metric not to exceed 30 cents. As a results, APRN stock dropped 17 percent and is currently traded at a two times lower level than during the IPO.
And Snapchat is not doing better. Social media application reported sluggish user growth numbers for the second quarter in a row. Considering there have only been two earnings reports after the company went public, the trend does no instill confidence in potential Snap investors. Its stock has also lost 17 percent of its value and is currently traded at one third of the IPO price.
Tech giants like Amazon and Facebook are partially responsible for the downfall of two newly created start-ups. By aggressively investing in complementary industries, the former have siphoned money out of newcomers.Trade now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future
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