More than 24 internet companies launched IPOs last year in the United States alone according to Renaissance Capital. In 2011, four of the five largest Internet IPOs in the United States – Bankrate, Groupon, LinkedIn and Zynga – raised $ 2.4 billion. However, if you've bought any IPO stocks on the internet or social media in the past couple of 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 the first day of trading.
The recession has been attributed to the slow growth of the US economy and the sovereign debt of countries like Greece and Italy. Economic worries caused market volatility which made IPO pricing difficult.
Internet IPOs from 2011 include Angie & # 39; s List, Bankrate, Cornerstone OnDemand, LinkedIn, and Zillow. OnDemand Media, Groupon, and Pandora are all well below IPO prices. The large Chinese IPOs RenRen and Tudou are also well-rated prices.
Entrepreneur and healthcare provider review site Angie & # 39; s List waited 16 years before going public on November 17. The IPO price was $ 13 and it rose to over $ 18 on day one of trading. It closed at $ 16.42 on December 14, but had fallen below the IPO price earlier in the month. The business is not profitable.
The bank rate
Bankrate (RATE) has a long track record since its inception 35 years ago. The company collects bank interest rate data and information on 300 other financial products from 4,800 banks and distributes it in several newspapers and online publications. Bankrate Inc.'s initial public offering elicited little reaction on day one of trading, with investors worrying about high leverage, past governance issues, and over-the-top governance issues. high valuation.
The on-demand talent management firm (US: CSOD) jumped 46.7% to close at $ 19.07 when it went public. Cornerstone offers software as a service that enables businesses to train their employees and track employee performance.
This business-to-business social networking business went public on May 19 at $ 45 a share. On day one, 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 that LinkedIn should have been priced at $ 90 a share. However, LinkedIn is one of the few internet companies that never dropped below its initial bid and closed at $ 65.95 on December 14, so maybe underwriters were right in their prudent pricing. LinkedIn says it has been profitable since 2006.
This company provides real estate market information to consumers and real estate professionals. It was listed on July 20 when it was priced at $ 20 and went all the way to $ 44. For most of September, it ranged between $ 35 and $ 37.50, but closed at $ 22.13 on December 14. Zillow became profitable in the first quarter as a public company.