Analysis

4 Tips To Avoid A 1st Quarter Flop Once You Go Public

Law360, New York (May 26, 2017, 1:24 PM EDT) -- A glitzy initial public offering marks a huge milestone in a company's development, but a rocky first quarter can quickly take the luster off that signature event, as disappointing results could hammer a company's stock and risk lawsuits from investors alleging they were misled.

Social media darling Snap Inc. is the latest company to have suffered a setback in its first public quarter. The Snapchat app maker on May 10 reported user growth perceived as disappointing by many investors, prompting a 21 percent drop in stock value the next day, just two months after its blockbuster IPO that ultimately raised $3.9...

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