Over 24 Internet companies launched IPOs last year in the US
alone according to Renaissance Capital. 2011 included four of the five
largest US Internet IPOs ever - Bankrate, Groupon, LinkedIn and Zynga -
raising $2.4 billion. However if you bought Internet or social-media IPO
stocks in the past couple of years, you have probably lost money.
According to Birinyi analyst Kevin Pleines, 18 of the 30 stocks are
below their IPO price and 24 of the 30 are below their opening price on
their first day of trading.
The slump has been attributed to slow growth in the U.S. economy and sovereign debt in countries including Greece and Italy. The economic concerns caused market volatility that made pricing IPOs difficult.
Internet IPOs from 2011 performing include Angie's List, Bankrate, Cornerstone OnDemand, LinkedIn and Zillow. OnDemand Media, Groupon, and Pandora are all well below IPO prices. The large China IPOs RenRen and Tudou are well listed prices as well.
Angie's List
Contractor and healthcare provider review site Angie's List waited 16 years before going public on November 17th. The IPO price was $13 and it rose to over $18 on the first day of trading. It closed at $16.42 on December 14th but had dipped below the IPO price early in the month. The company is not profitable.
Bankrate
Bankrate (RATE) has a long track record of operation since its founding 35 years ago. The company collects bank interest rates data and information on 300 other financial products from 4,800 banks and distributes to several newspapers and online publications. Bankrate Inc.'s initial public offering drew a weak response on the first day of trading as investors worry of high debt, past governance issues and lofty valuation.
Cornerstone OnDemand
The on-demand talent management company (US:CSOD) jumped 46.7% to close at $19.07 as its initial public offering. Cornerstone offers software-as-service that allows businesses to train employees and track their performance of their employees.
LinkedIn
This business-to-business social networking company went public on May 19th at $45 a share. On the first day, the stock rose to almost $110. At the time LinkedIn's underwriters - Bank of America, Merrill Lynch and Morgan Stanley - were criticized for setting the price so low. Analysts suggested LinkedIn should have been priced at $90 a share. However, LinkedIn is one of the few Internet companies that has never dipped below its initial offer and closed at $65.95 on December 14th, so perhaps the underwriters were correct in their conservative pricing. LinkedIn states that it has been profitable since 2006.
Zillow
This company provides real estate market information for consumers and real estate professionals. It was listed on July 20th when it was priced at $20 and went as high as $44. For most of September it ranged between $35 and $37.50 but closed at $22.13 on December 14th. Zillow became profitable in its first quarter as a public company.
The slump has been attributed to slow growth in the U.S. economy and sovereign debt in countries including Greece and Italy. The economic concerns caused market volatility that made pricing IPOs difficult.
Internet IPOs from 2011 performing include Angie's List, Bankrate, Cornerstone OnDemand, LinkedIn and Zillow. OnDemand Media, Groupon, and Pandora are all well below IPO prices. The large China IPOs RenRen and Tudou are well listed prices as well.
Angie's List
Contractor and healthcare provider review site Angie's List waited 16 years before going public on November 17th. The IPO price was $13 and it rose to over $18 on the first day of trading. It closed at $16.42 on December 14th but had dipped below the IPO price early in the month. The company is not profitable.
Bankrate
Bankrate (RATE) has a long track record of operation since its founding 35 years ago. The company collects bank interest rates data and information on 300 other financial products from 4,800 banks and distributes to several newspapers and online publications. Bankrate Inc.'s initial public offering drew a weak response on the first day of trading as investors worry of high debt, past governance issues and lofty valuation.
Cornerstone OnDemand
The on-demand talent management company (US:CSOD) jumped 46.7% to close at $19.07 as its initial public offering. Cornerstone offers software-as-service that allows businesses to train employees and track their performance of their employees.
This business-to-business social networking company went public on May 19th at $45 a share. On the first day, the stock rose to almost $110. At the time LinkedIn's underwriters - Bank of America, Merrill Lynch and Morgan Stanley - were criticized for setting the price so low. Analysts suggested LinkedIn should have been priced at $90 a share. However, LinkedIn is one of the few Internet companies that has never dipped below its initial offer and closed at $65.95 on December 14th, so perhaps the underwriters were correct in their conservative pricing. LinkedIn states that it has been profitable since 2006.
Zillow
This company provides real estate market information for consumers and real estate professionals. It was listed on July 20th when it was priced at $20 and went as high as $44. For most of September it ranged between $35 and $37.50 but closed at $22.13 on December 14th. Zillow became profitable in its first quarter as a public company.
Futurebooks is Singapore's and Hong Kong's most progressive
bookkeeping company. The firm offers affordable incorporation,
bookkeeping, business planning and business brokering.
Whether your goal is to be acquired or to be more profitable this quarter, we provide planning to keep your business on track and bookkeeping services that streamline the journey.
To demonstrate our commitment our bookkeeping service is packed with extras, such as a 30 day money-back guarantee and free quarterly business consultancy from one of our practitioners.
Visit our website and chat to us live or follow us on Twitter.
Whether your goal is to be acquired or to be more profitable this quarter, we provide planning to keep your business on track and bookkeeping services that streamline the journey.
To demonstrate our commitment our bookkeeping service is packed with extras, such as a 30 day money-back guarantee and free quarterly business consultancy from one of our practitioners.
Visit our website and chat to us live or follow us on Twitter.
