Cloud’s Cruddy Deals Teach a Lesson in IPO Patience
November 28, 2012
Grazed from InvestorPlace. Author: Tom Taulli.
Cloud computing might be one of the most-hyped technologies in 2012, and that’s been reflected a bit in the IPO market, where shares of Workday (NYSE:WDAY) are up 85%, and ServiceNow (NYSE:NOW) has posted a gain of 69% since coming public.
However, a swath of companies haven’t been able to push the needle since their deals — and that provides us a quick lesson about the IPO market.
A look at some of the most notable cloud flops so far this year:..
|
COMPANY |
TICKER |
IPO DATE |
IPO PRICE |
CURRENT PRICE |
RETURN |
|
Proofpoint |
PFPT |
4/19/12 |
$13 |
$10.38 |
-20% |
|
Bazaarvoice |
BV |
2/23/12 |
$12 |
$9.71 |
-19% |
|
Brightcove |
BCOV |
2/16/12 |
$11 |
$9.76 |
-11% |
|
Millennial Media |
MM |
3/28/12 |
$13 |
$13.05 |
0% |
|
ExactTarget |
ET |
3/21/12 |
$19 |
$20.00 |
+5% |
Of course, keep in mind that all these IPOs saw price spikes when they hit the market. If you look at the returns compared to their highs, the results are downright awful:…
Read more from the source @ http://investorplace.com/ipo-playbook/clouds-cruddy-deals-teach-a-lesson-in-ipo-patience/