Deals
Snap and Blue Apron Continue to Plunge
- Pre-IPO valuations greeted with skepticism on public market
- Airbnb, Dropbox, Uber seen as possibly delaying going public
Former Twitter CEO Costolo Says Snap Faces Challenges
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Snap Inc. and Blue Apron Holdings Inc. have swiftly gone from two of the year’s most anticipated IPOs to poster children for companies whose rich private valuations haven’t withstood the scrutiny of public markets.
Investors’ urgency to grab a piece of what could be the next big thing -- a bet on future innovation -- has helped drive up valuations of unprofitable private companies facing fierce competition. Public market investors are showing a reluctance to reward rich market values without proof of financial health and future growth. That includes Snap and Blue Apron, both of which are trading below their initial public offering price.