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New Listings Stink Up Earnings Season After Reports Disappoint

Crystal Kim
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New Listings Stink Up Earnings Season After Reports Disappoint

(Bloomberg) -- Shares in three of the year’s hottest IPOs, Uber Technologies Inc., Revolve Group Inc. and Fastly Inc., plunged Friday as the latest batch of newly listed companies reported some of the most disappointing results this earnings season.

Uber shares ended Friday 6.8% lower after the ride-hailing company missed sales estimates. Revolve fell 15.6% after the fashion e-tailer reported earnings below expectations. And Fastly, which saw its shares dip below its IPO price intraday, declined 18.1% after reporting lighter than expected margins.

The disappointment spread to other IPOs that have not even reported yet, with RealReal Inc. shares tumbling 23% to below its IPO price of $20.

Call it an upset, given the hype that tends to follow IPOs. Among the nearly 20 freshly listed companies that reported earnings this week, the majority fell in the next session. IPOs are rising 0.2% on average following reports, lagging behind S&P 500 stocks, which climbed 5.3% on average, according to data compiled by Bloomberg.

Other newcomers on deck to report earnings include Adaptive Biotechnologies Corp., Greenlane Holdings Inc., RealReal Inc., and Grocery Outlet Holding Inc. They are among the more well-received IPOs of this year with stocks that opened at least 40% above their offer prices. All are first-time reporters.

Cross-border IPOs will be tested as well when China’s big brands So-Young International Inc. and Luckin Coffee Inc. do their show-and-tell.

(Updates shares in 1st and 2nd paragraphs, adds RealReal shares in 3rd.)

--With assistance from Drew Singer.

To contact the reporter on this story: Crystal Kim in New York at ckim426@bloomberg.net

To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Jennifer Bissell-Linsk, Richard Richtmyer

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