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Snap's fade could make future IPOs vanish

A woman stands in front of the logo of Snap Inc. on the floor of the New York Stock Exchange (NYSE) while waiting for Snap Inc. to post their IPO, in New York City, NY, U.S. March 2, 2017.

Lucas Jackson

DALLAS (Reuters Breakingviews) - Snap is haunting the market. The parent of the disappearing-message app reported its second consecutive quarter of disappointing results. Slowing user growth, more losses and fresh fallout from its lousy governance have erased a third of its market value. Others mulling going public may be scared off.

The company led by Evan Spiegel reported on Thursday that even as revenue jumped some 150 percent from the same time last year, it fell short of what analysts had been expecting. Losses also widened substantially to $443 million from $115 million.

Most startups can withstand the red ink as long as they keep attracting more people to use their services. For Snapchat, such growth is slowing. It added only...