The Most Popular Internet IPOs of 2011: Who Got Big and Who Came Home
More than 24 internet companies launched IPOs last year in the US alone, according to Renaissance Capital. 2011 included four of the five largest Internet IPOs in US history: Bankrate, Groupon, LinkedIn and Zynga, which raised $ 2.4 billion. However, if you’ve bought IPO shares from the internet or social media in recent years, you’ve 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 trading day.
The drop has been attributed to slow growth in the US economy and sovereign debt in countries like Greece and Italy. Economic concerns led to market volatility that made IPO prices difficult.
2011 Internet IPOs include Angie’s List, Bankrate, Cornerstone OnDemand, LinkedIn and Zillow. OnDemand Media, Groupon and Pandora are well below IPO prices. The big China IPOs RenRen and Tudou are also well priced.
Angie’s List
Healthcare provider and contractor review site Angie’s List waited 16 years before going public on November 17. The IPO price was $ 13 and rose to more than $ 18 on the first day of trading. It closed at $ 16.42 on December 14, but had fallen below the IPO price earlier in the month. The company is not profitable.
Bank fee
Bankrate (RATE) has a long history of operations since its founding 35 years ago. The company collects data and information on bank interest rates on 300 other financial products from 4,800 banks and distributes them to various online newspapers and publications. Bankrate Inc.’s initial public offering generated a weak response on the first day of trading as investors worry about high debt, past governance issues and high valuation.
Cornerstone OnDemand
On-demand talent management company (US: CSOD) jumped 46.7% to close at $ 19.07 as an initial public offering. Cornerstone offers software as a service that enables companies to train employees and track the performance of their employees.
LinkedIn
This business-to-business social media company went public on May 19 at $ 45 a share. On the first day, the stock rose to nearly $ 110. At the time, LinkedIn subscribers Bank of America, Merrill Lynch and Morgan Stanley were criticized for pricing so low. Analysts suggested that LinkedIn should have been priced at $ 90 per share. However, LinkedIn is one of the few Internet companies that has never fallen short of its initial bid and closed at $ 65.95 on December 14, so perhaps subscribers were right in its conservative prices. LinkedIn claims that it has been profitable since 2006.
Zillow
This company provides information on the real estate market for consumers and real estate professionals. It was listed on July 20 when it was priced at $ 20 and reached $ 44. For most of September, it ranged between $ 35 and $ 37.50, but closed at $ 22.13 on December 14. . Zillow became profitable in its first quarter as a public company.