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Dan Primack May 11, 2017
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Snap's stock slump won't hurt other tech IPOs

Greg Ruben / Axios

In the aftermath of Snap's earnings miss and subsequent stock slump, there has been some Silicon Valley concern that the stench could rub off on other tech companies seeking to go public. But it won't.

No harbinger here: Snap's IPO was always an outlier, in terms of both its size (mammoth) and its industry sector (consumer Internet). The vast majority of tech companies going public are much smaller and focused on enterprise customers. If an investor buys or sells into a company like Cloudera or Okta because of Snap's performance, then it isn't a very sophisticated investor.