Tuesday, May 16, 2017

Big Data Companies Going Public? Do They Succeed?

Some companies are known for their use of big data. In 2017, innovation is at its forefront, and those that are willing to be creative and do something new are being handsomely rewarded. That being said, with business models that are often harder to understand than traditional ones, how do these businesses fare when reaching the public markets? The recent IPO of Snapchat has been a hot topic in the past month and hasn’t led Wall Street to a consensus on how well the company will do. That being said, there are some great examples of big data companies that excel and grow after going public and ones that become long-term underachievers.


It’s easy to compare Snapchat to Facebook as both were led by highly-educated youngsters that approached a college innovation passionately, but there’s nothing to tell us that it will replicate its success. Twitter is another example of big data social media that gains traction and usage, but has never made the financial growth of Facebook when a big data company like Amazon has become one of the biggest growth companies of all time. Though it may not be fair to compare all of these companies since they are vastly different in areas, they are all household names that have made the best of big data. If IPO’s of big data companies in the past tell us anything, we don’t know what to expect. As companies like Uber, Airbnb and others brace to possibly go public, they may want to hold their breath as they go.

http://money.cnn.com/2017/03/06/investing/snap-snapchat-unicorns-ipos/

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