Forget Stock Price
Inc.|May 2017

Look Closely To Find The Real Marks Of Post-Ipo Success.

Jacqueline Kelley
Forget Stock Price

IT’S A FAMILIAR TALE: A hot startup announces plans to go public. Demand is brisk, the company makes a strong market debut, and its stock price and investors’ expectations climb. And then, in the following months or years, comes the bad news: quarterly losses, lack of growth, layoffs, and a tumbling stock price.

What goes wrong? For starters, the focus on market valuation. Just as a splashy wedding is no guarantee of an enduring marriage, stock price at IPO says little about a company’s long-term prospects. Truly successful IPOs are about more than creating hot products—they are about creating sustainable companies.

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