Google 7th IPO of the year to double
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The lesson in Google's rise
The lesson in Google's rise
By John Shinal, CBS.MarketWatch.com
Last Update: 7:19 PM ET Oct. 28, 2004
SAN FRANCISCO (CBS.MW) -- As Google shares flirt with the $200 mark, investors have to wonder whether many of those buying the stock near that lofty level are money managers who once spurned it at half that price.
Google (GOOG: news, chart, profile) shares have more than doubled since the Web search firm's Aug. 18 initial public offering, when a modified Dutch auction priced the shares at $85. Google closed up $7.33, or nearly 4 percent, at $193.30 Thursday, after earlier rising to $194.39.
And it's not just day traders and mom-and-pop investors accumulating Google shares.
Even though Wall Street veterans know that all hot IPO issues eventually come back to earth, and that Google faces long-term challenges from formidable rivals such as Microsoft (MSFT: news, chart, profile) and Yahoo (YHOO: news, chart, profile), trading data suggests that institutions are indeed among the buyers.
On Thursday, Google was the most active Nasdaq stock, as measured by the dollar value of the shares traded. Trading volume in the stock has exceeded 10 million shares for seven straight days.
"With this kind of volume, it's not just retail demand," said Mark Lehmann, head of securities at the San Francisco investment bank JMP Securities.
That likely means some deep-pocketed investors have had a change of heart.
While some big fund firms - most notably Fidelity, which accumulated 5 million Google shares by early September - were early believers in the stock, many others rejected it for reasons that had nothing to do with its price.
When the Mountain View search firm held investor meetings in New York, San Francisco and other cities ahead of its August offering, many in the big-money crowd expressed indignation that the Web search company had decided not to play by the old IPO rules.
Those rules, which gave managers of mutual funds and hedge funds inside information on and access to hot IPO's, enriched many during the tech boom of the late 1990s.
But Google, as everyone knows, did things differently.
At those meetings, Google founders Sergey Brin and Larry Page adhered to the letter of federal securities regulations, which restrict executives of companies in IPO registration from sharing any information that is not contained in its public prospectus.
That brought indignation from those managers who already were peeved that Google had estimated its IPO auction would value its shares in a range between $108 and $135 a share. The nerve!
Some made it clear, as they were leaving the Google meeting room at the Four Seasons Hotel in San Francisco, that they wouldn't be interested in Google at any price because the company wouldn't play ball with Wall Street.
Their comments are a reminder that while Google's battle with Wall Street was marked by antagonistic relations with big investment banks, some of the company's most vocal critics were institutional investors.
No fools, they knew how much institutions had to lose if a successful Google offering prompted other companies to use auctions to give retail investors an equal shot at IPO shares.
So far, the auction trend has yet to materialize. But the torrid performance of Google shares since the IPO is evidence that holding onto the old ways can lead to missed opportunities.
By John Shinal, CBS.MarketWatch.com
Last Update: 7:19 PM ET Oct. 28, 2004
SAN FRANCISCO (CBS.MW) -- As Google shares flirt with the $200 mark, investors have to wonder whether many of those buying the stock near that lofty level are money managers who once spurned it at half that price.
Google (GOOG: news, chart, profile) shares have more than doubled since the Web search firm's Aug. 18 initial public offering, when a modified Dutch auction priced the shares at $85. Google closed up $7.33, or nearly 4 percent, at $193.30 Thursday, after earlier rising to $194.39.
And it's not just day traders and mom-and-pop investors accumulating Google shares.
Even though Wall Street veterans know that all hot IPO issues eventually come back to earth, and that Google faces long-term challenges from formidable rivals such as Microsoft (MSFT: news, chart, profile) and Yahoo (YHOO: news, chart, profile), trading data suggests that institutions are indeed among the buyers.
On Thursday, Google was the most active Nasdaq stock, as measured by the dollar value of the shares traded. Trading volume in the stock has exceeded 10 million shares for seven straight days.
"With this kind of volume, it's not just retail demand," said Mark Lehmann, head of securities at the San Francisco investment bank JMP Securities.
That likely means some deep-pocketed investors have had a change of heart.
While some big fund firms - most notably Fidelity, which accumulated 5 million Google shares by early September - were early believers in the stock, many others rejected it for reasons that had nothing to do with its price.
When the Mountain View search firm held investor meetings in New York, San Francisco and other cities ahead of its August offering, many in the big-money crowd expressed indignation that the Web search company had decided not to play by the old IPO rules.
Those rules, which gave managers of mutual funds and hedge funds inside information on and access to hot IPO's, enriched many during the tech boom of the late 1990s.
But Google, as everyone knows, did things differently.
At those meetings, Google founders Sergey Brin and Larry Page adhered to the letter of federal securities regulations, which restrict executives of companies in IPO registration from sharing any information that is not contained in its public prospectus.
That brought indignation from those managers who already were peeved that Google had estimated its IPO auction would value its shares in a range between $108 and $135 a share. The nerve!
Some made it clear, as they were leaving the Google meeting room at the Four Seasons Hotel in San Francisco, that they wouldn't be interested in Google at any price because the company wouldn't play ball with Wall Street.
Their comments are a reminder that while Google's battle with Wall Street was marked by antagonistic relations with big investment banks, some of the company's most vocal critics were institutional investors.
No fools, they knew how much institutions had to lose if a successful Google offering prompted other companies to use auctions to give retail investors an equal shot at IPO shares.
So far, the auction trend has yet to materialize. But the torrid performance of Google shares since the IPO is evidence that holding onto the old ways can lead to missed opportunities.
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- Mensagens: 596
- Registado: 11/8/2004 10:39
I'm not overpriced, I'm just drawn that way
When DreamWorks Animation (NYSE: DWA) went public on Thursday, it wasn't just your kid watching Shrek for the hundredth time who saw green. The company was able to raise roughly $700 million as its IPO popped from its $28 offering price to $39.50 at the open. That places the studio's valuation on par with Pixar (Nasdaq: PIXR) as each company is now valued at more than $4 billion.
There are big profits to be made here as both players are producing wide net margins, and successful animated features flow through so many other lucrative revenue streams like toys, character licensing deals, and the hungry DVD market.
But DreamWorks lost money during three of the four previous years and the animation studio has had its share of duds in the past.
Pixar has a better track record.
DreamWorks counters by an aggressive release schedule that will find it putting out more feature length animation flicks than Pixar in the coming years.
But at a market cap of $4.2 billion, it's not giving itself much room for failure.
When DreamWorks Animation (NYSE: DWA) went public on Thursday, it wasn't just your kid watching Shrek for the hundredth time who saw green. The company was able to raise roughly $700 million as its IPO popped from its $28 offering price to $39.50 at the open. That places the studio's valuation on par with Pixar (Nasdaq: PIXR) as each company is now valued at more than $4 billion.
There are big profits to be made here as both players are producing wide net margins, and successful animated features flow through so many other lucrative revenue streams like toys, character licensing deals, and the hungry DVD market.
But DreamWorks lost money during three of the four previous years and the animation studio has had its share of duds in the past.
Pixar has a better track record.
DreamWorks counters by an aggressive release schedule that will find it putting out more feature length animation flicks than Pixar in the coming years.
But at a market cap of $4.2 billion, it's not giving itself much room for failure.
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- Mensagens: 596
- Registado: 11/8/2004 10:39
The animation flood: Too much Shrek?
Hollywood can't get enough of computer animation flicks. Will moviegoers join the binge?
October 28, 2004: 3:32 PM EDT
Krysten Crawford, CNN/Money staff writer
NEW YORK (CNN/Money) - Weeks or months from now, there is a good chance that DreamWorks Animation's decision to go public Thursday will look not only smart, but pure genius.
That's because movie studios big and small are racing to cash in on what has become a sizzling hot genre: animated films, particularly ones based on computer-generated images.
A dozen or more such films are in the works through 2006. But box office analysts say the deluge risks turning off the movie-going masses. Given the exorbitant costs of making and marketing an animated movie, more than a few studios could soon take a bath.
DreamWorks Animation's initial public offering, which raised $812 million and started trading Thursday at 39 percent above the offering price, showed Hollywood that there is space for another animation studio besides industry leader Pixar Animation Studios.
"I don't think it is a one-company industry," said Dennis McAlpine, an independent media stock analyst. "There's room for both DreamWorks and Pixar to thrive."
What about a third player? "That," said McAlpine, "will be hard."
DreamWorks: right place, right time
In many respects, the timing of the $812 million DreamWorks Animation (up $10.61 to $38.61, Research) initial public offering Wednesday was ideal.
It came just weeks after DreamWorks released "Shark Tale." With worldwide box office receipts of $227 million and climbing, showed investors that its animation unit was more than just a one-hit wonder named Shrek.
The IPO also came a week before "Shrek 2," now the top-grossing animated flick of all time, comes out Nov. 5 on DVD. The same day, DreamWorks' arch rival Pixar Animation (up $0.83 to $80.65, Research) rolls out its sixth cartoon comedy, "The Incredibles."
On Nov. 10, Warner Bros. is due to release "The Polar Express," followed nine days later by Paramount's "SpongeBob SquarePants Movie." (Warner Bros., along with CNN/Money, is owned by Time Warner (up $0.12 to $16.51, Research); Paramount is a Viacom (up $1.08 to $36.07, Research) unit.)
At least four computer-generated image, or CGI, movies are in the works for 2005, including "Chicken Little" from The Walt Disney Co. (up $0.18 to $25.15, Research) and DreamWorks Animation's "Madagascar." Among the CGIs set for 2006? "Shrek 3."
The tipping point behind the computer animation craze is hard to know.
It could have been the original "Shrek," Dreamworks' surprise 2001 hit. The film brought in over $1 billion in global ticket sales, DVD rentals and merchandise sales and gross profits of more than $400 million, according to research by Fulcrum Global Partners.
It could have been last year's "Finding Nemo," the Pixar-Disney blockbuster that is now No. 2 behind "Shrek 2" on the list of top-grossing animated films and whose home video is a bestseller.
Or, as a few analysts suspect, the stampede began in 2002 with a middling movie called "Ice Age."
With "Ice Age," Twentieth Century Fox entered the CGI arena with a movie that critics panned and yet reaped $550 million in worldwide box office receipts.
Movie analyst David Mumpower, the president of BoxOfficeProphets.com, called it "jaw-dropping" that a poorly-animated film like "Ice Age" could do so well and "goes a long way in demonstrating how much audiences have locked onto anything CGI."
The same could be said of "Shark Tale," which has drawn audiences despite tepid reviews.
The question is, will consumer's appetite for animation last and for how long?
It's about creativity, not computers
"At some point (the market) does get saturated," said Tom Taulli who, as co-founder of Current Offerings, an IPO tracking service, has followed DreamWorks Animation's stock debut.
If that happens with animation, the bloodbath could be ugly. Animation movies take years to develop and the studio costs are enormous, noted McAlpine, the media and entertainment analyst. "At most you might see 2 of these films a year from one studio," he said.
DreamWorks is a good example of how hard it is to make money off cartoons. When investors think of the company's animation business, they think of the blowout success of "Shrek" and "Shrek 2."
But Dreamworks has produced seven other animated feature flicks in the last 10 years, including flops like "Spirit: Stallion of the Cimarron" and "Sinbad: The Legend of the Seven Seas." Weighed down by hefty marketing costs, the animation unit has lost money in three of the last five years.
Production costs next year will run about $370 million, or $45 million more than in 2004.
The goods new for DreamWorks is, its worst box office performers have all been based on hand-drawn graphics. Future studio releases will be CGI or stop motion (also called "claymation") feature films.
Still, the studio's track record has made some analysts nervous about the long-term prospects not just of DreamWorks but also others, whether it's the pioneering Pixar or new entrants like Warner Bros. and Fox.
The quality of CGI films may not matter now, but it will. Once moviegoers have more choices, studios may need even heftier marketing campaigns to gain an edge.
Links referenced within this article
DreamWorks Animation
http://money.cnn.com/quote/quote.html?s ... e&symb=DWA
Research
http://cnnfn.multexinvestor.com/Reports.aspx?ticker=DWA
Pixar Animation
http://money.cnn.com/quote/quote.html?s ... &symb=PIXR
Research
http://cnnfn.multexinvestor.com/Reports ... icker=PIXR
Time Warner
http://money.cnn.com/quote/quote.html?s ... e&symb=TWX
Research
http://cnnfn.multexinvestor.com/Reports.aspx?ticker=TWX
Viacom
http://money.cnn.com/quote/quote.html?s ... &symb=VIAB
Research
http://cnnfn.multexinvestor.com/Reports ... icker=VIAB
The Walt Disney Co.
http://money.cnn.com/quote/quote.html?s ... e&symb=DIS
Research
http://cnnfn.multexinvestor.com/Reports.aspx?ticker=DIS
Find this article at:
http://money.cnn.com/2004/10/28/technol ... /index.htm
Hollywood can't get enough of computer animation flicks. Will moviegoers join the binge?
October 28, 2004: 3:32 PM EDT
Krysten Crawford, CNN/Money staff writer
NEW YORK (CNN/Money) - Weeks or months from now, there is a good chance that DreamWorks Animation's decision to go public Thursday will look not only smart, but pure genius.
That's because movie studios big and small are racing to cash in on what has become a sizzling hot genre: animated films, particularly ones based on computer-generated images.
A dozen or more such films are in the works through 2006. But box office analysts say the deluge risks turning off the movie-going masses. Given the exorbitant costs of making and marketing an animated movie, more than a few studios could soon take a bath.
DreamWorks Animation's initial public offering, which raised $812 million and started trading Thursday at 39 percent above the offering price, showed Hollywood that there is space for another animation studio besides industry leader Pixar Animation Studios.
"I don't think it is a one-company industry," said Dennis McAlpine, an independent media stock analyst. "There's room for both DreamWorks and Pixar to thrive."
What about a third player? "That," said McAlpine, "will be hard."
DreamWorks: right place, right time
In many respects, the timing of the $812 million DreamWorks Animation (up $10.61 to $38.61, Research) initial public offering Wednesday was ideal.
It came just weeks after DreamWorks released "Shark Tale." With worldwide box office receipts of $227 million and climbing, showed investors that its animation unit was more than just a one-hit wonder named Shrek.
The IPO also came a week before "Shrek 2," now the top-grossing animated flick of all time, comes out Nov. 5 on DVD. The same day, DreamWorks' arch rival Pixar Animation (up $0.83 to $80.65, Research) rolls out its sixth cartoon comedy, "The Incredibles."
On Nov. 10, Warner Bros. is due to release "The Polar Express," followed nine days later by Paramount's "SpongeBob SquarePants Movie." (Warner Bros., along with CNN/Money, is owned by Time Warner (up $0.12 to $16.51, Research); Paramount is a Viacom (up $1.08 to $36.07, Research) unit.)
At least four computer-generated image, or CGI, movies are in the works for 2005, including "Chicken Little" from The Walt Disney Co. (up $0.18 to $25.15, Research) and DreamWorks Animation's "Madagascar." Among the CGIs set for 2006? "Shrek 3."
The tipping point behind the computer animation craze is hard to know.
It could have been the original "Shrek," Dreamworks' surprise 2001 hit. The film brought in over $1 billion in global ticket sales, DVD rentals and merchandise sales and gross profits of more than $400 million, according to research by Fulcrum Global Partners.
It could have been last year's "Finding Nemo," the Pixar-Disney blockbuster that is now No. 2 behind "Shrek 2" on the list of top-grossing animated films and whose home video is a bestseller.
Or, as a few analysts suspect, the stampede began in 2002 with a middling movie called "Ice Age."
With "Ice Age," Twentieth Century Fox entered the CGI arena with a movie that critics panned and yet reaped $550 million in worldwide box office receipts.
Movie analyst David Mumpower, the president of BoxOfficeProphets.com, called it "jaw-dropping" that a poorly-animated film like "Ice Age" could do so well and "goes a long way in demonstrating how much audiences have locked onto anything CGI."
The same could be said of "Shark Tale," which has drawn audiences despite tepid reviews.
The question is, will consumer's appetite for animation last and for how long?
It's about creativity, not computers
"At some point (the market) does get saturated," said Tom Taulli who, as co-founder of Current Offerings, an IPO tracking service, has followed DreamWorks Animation's stock debut.
If that happens with animation, the bloodbath could be ugly. Animation movies take years to develop and the studio costs are enormous, noted McAlpine, the media and entertainment analyst. "At most you might see 2 of these films a year from one studio," he said.
DreamWorks is a good example of how hard it is to make money off cartoons. When investors think of the company's animation business, they think of the blowout success of "Shrek" and "Shrek 2."
But Dreamworks has produced seven other animated feature flicks in the last 10 years, including flops like "Spirit: Stallion of the Cimarron" and "Sinbad: The Legend of the Seven Seas." Weighed down by hefty marketing costs, the animation unit has lost money in three of the last five years.
Production costs next year will run about $370 million, or $45 million more than in 2004.
The goods new for DreamWorks is, its worst box office performers have all been based on hand-drawn graphics. Future studio releases will be CGI or stop motion (also called "claymation") feature films.
Still, the studio's track record has made some analysts nervous about the long-term prospects not just of DreamWorks but also others, whether it's the pioneering Pixar or new entrants like Warner Bros. and Fox.
The quality of CGI films may not matter now, but it will. Once moviegoers have more choices, studios may need even heftier marketing campaigns to gain an edge.
Links referenced within this article
DreamWorks Animation
http://money.cnn.com/quote/quote.html?s ... e&symb=DWA
Research
http://cnnfn.multexinvestor.com/Reports.aspx?ticker=DWA
Pixar Animation
http://money.cnn.com/quote/quote.html?s ... &symb=PIXR
Research
http://cnnfn.multexinvestor.com/Reports ... icker=PIXR
Time Warner
http://money.cnn.com/quote/quote.html?s ... e&symb=TWX
Research
http://cnnfn.multexinvestor.com/Reports.aspx?ticker=TWX
Viacom
http://money.cnn.com/quote/quote.html?s ... &symb=VIAB
Research
http://cnnfn.multexinvestor.com/Reports ... icker=VIAB
The Walt Disney Co.
http://money.cnn.com/quote/quote.html?s ... e&symb=DIS
Research
http://cnnfn.multexinvestor.com/Reports.aspx?ticker=DIS
Find this article at:
http://money.cnn.com/2004/10/28/technol ... /index.htm
- Anexos
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DreamWorks, Shopping.com lead IPOs
DreamWorks, Shopping.com lead IPOs
Latest deals anchor revival in market newcomers
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 3:14 PM ET Oct. 28, 2004
NEW YORK (CBS.MW) -- On the heels of Google's success, DreamWorks Animation and Shopping.com this week showed the vibrancy in the fall IPO market.
DreamWorks Animation (DWA: news, chart, profile) rocked about 40 percent higher in its debut, as the producer of the blockbuster "Shrek" movies raised more than $800 million in the first IPO out of Hollywood in years. See interview with Jeffrey Katzenberg
On Tuesday, Shopping.com (SHOP: news, chart, profile) rang up the best first-day performance of any U.S.-based IPO this year. See full story.
All this comes days after Google (GOOG: news, chart, profile) doubled its IPO price just 60 days after going public, in the wake of its first quarterly earnings report. See full story.
A total of six IPOs kicked off on Thursday, in the busiest day for initial public offerings since December 2003. See full story.
While such deals have been heating up all year, October is proving to be a decisive month in the revival of stock newcomers.
A total of 31 IPOs are on deck in October. If all the offerings roll out by the end of the month, it'll rank as the largest number of deals since August 2000, when 60 IPOs took off.
Several sectors are powering the comeback.
Google tops off a list of dot-com survivors that have come back to offer Wall Street more solid fundamentals than their more speculative predecessors.
Chinese deals also are receiving a lot of attention, with eLong (LONG: news, chart, profile) and 51job (JOBS: news, chart, profile) debuting recently.
What's more, it appears there's a deal-by-deal trend in the IPO market, with Wall Street looking at any company with a compelling story and good financials.
Build-A-Bear Workshop (BBW: news, chart, profile), Huron Consulting (HURN: news, chart, profile), New York & Co. (NWY: news, chart, profile), Texas Roadhouse (TXRH: news, chart, profile) and U-Store-It Trust (YSI: news, chart, profile) don't fit into an specific trend, but the deals stand on their own merits.
Latest deals anchor revival in market newcomers
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 3:14 PM ET Oct. 28, 2004
NEW YORK (CBS.MW) -- On the heels of Google's success, DreamWorks Animation and Shopping.com this week showed the vibrancy in the fall IPO market.
DreamWorks Animation (DWA: news, chart, profile) rocked about 40 percent higher in its debut, as the producer of the blockbuster "Shrek" movies raised more than $800 million in the first IPO out of Hollywood in years. See interview with Jeffrey Katzenberg
On Tuesday, Shopping.com (SHOP: news, chart, profile) rang up the best first-day performance of any U.S.-based IPO this year. See full story.
All this comes days after Google (GOOG: news, chart, profile) doubled its IPO price just 60 days after going public, in the wake of its first quarterly earnings report. See full story.
A total of six IPOs kicked off on Thursday, in the busiest day for initial public offerings since December 2003. See full story.
While such deals have been heating up all year, October is proving to be a decisive month in the revival of stock newcomers.
A total of 31 IPOs are on deck in October. If all the offerings roll out by the end of the month, it'll rank as the largest number of deals since August 2000, when 60 IPOs took off.
Several sectors are powering the comeback.
Google tops off a list of dot-com survivors that have come back to offer Wall Street more solid fundamentals than their more speculative predecessors.
Chinese deals also are receiving a lot of attention, with eLong (LONG: news, chart, profile) and 51job (JOBS: news, chart, profile) debuting recently.
What's more, it appears there's a deal-by-deal trend in the IPO market, with Wall Street looking at any company with a compelling story and good financials.
Build-A-Bear Workshop (BBW: news, chart, profile), Huron Consulting (HURN: news, chart, profile), New York & Co. (NWY: news, chart, profile), Texas Roadhouse (TXRH: news, chart, profile) and U-Store-It Trust (YSI: news, chart, profile) don't fit into an specific trend, but the deals stand on their own merits.
- Anexos
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- ipo.JPG (27.63 KiB) Visualizado 5386 vezes
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serginho Escreveu:Onde posso acompanhar a cotaçao da Dreamworks ?
Obrigado.
http://www.3dstockcharts.com/stockchart.aspx
pode ser necessário o registo grátis
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- Registado: 11/8/2004 10:39
DreamWorks Animation up 36% in early NYSE action (DWA)
DreamWorks Animation up 36% in early NYSE action (DWA)
By Steve Gelsi
NEW YORK (CBS.MW) -- DreamWorks Animation (DWA) is currently trading at $38 per share, for a gain of $10, or 36 percent, over its $28 offering price. Volume for the producer of the "Shrek" animated movies is tipping the scales at 7.5 million.
não está ainda disponivel no BIG..
ja teve no 39 mas nos ultimos minutos tem vindo a transaccionar abaixo dos 37
By Steve Gelsi
NEW YORK (CBS.MW) -- DreamWorks Animation (DWA) is currently trading at $38 per share, for a gain of $10, or 36 percent, over its $28 offering price. Volume for the producer of the "Shrek" animated movies is tipping the scales at 7.5 million.
não está ainda disponivel no BIG..
ja teve no 39 mas nos ultimos minutos tem vindo a transaccionar abaixo dos 37
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- Mensagens: 596
- Registado: 11/8/2004 10:39
preço IPO $28, acima do range $23-$25
DreamWorks IPO of 29M shares prices at $28 -- Dealogic (DWA)
By Carolyn Pritchard
SAN FRANCISCO (CBS.MW) -- DreamWorks Animation's (DWA) initial public offering of 29 million shares priced at $28 each late Wednesday, according to Dealogic, raising $812 million. Goldman Sachs and JP Morgan led the deal's underwriting. The pricing came in above the expected $23 to $25 range. Share of DreamWorks, the Glendale, Calif.-based producer of computer-generated animated films, are due to start trading on the New York Stock Exchange Thursday.
By Carolyn Pritchard
SAN FRANCISCO (CBS.MW) -- DreamWorks Animation's (DWA) initial public offering of 29 million shares priced at $28 each late Wednesday, according to Dealogic, raising $812 million. Goldman Sachs and JP Morgan led the deal's underwriting. The pricing came in above the expected $23 to $25 range. Share of DreamWorks, the Glendale, Calif.-based producer of computer-generated animated films, are due to start trading on the New York Stock Exchange Thursday.
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- Mensagens: 596
- Registado: 11/8/2004 10:39
O máximo de hoje da SHOP foi de 35.62USD... apenas a 38 cêntimos do dobro do valor do IPO... quase que era a 8ª a dobrar de valor... e em apenas 2 dias 
Vamos ver como é que a Dreamworks se vai comportar amanhã... pelo que se está a ver no NASDAQ, deverá abrir a subir uns 20%... parece que voltámos a 2000...
Um abraço
Nunofaustino
Vamos ver como é que a Dreamworks se vai comportar amanhã... pelo que se está a ver no NASDAQ, deverá abrir a subir uns 20%... parece que voltámos a 2000...
Um abraço
Nunofaustino
Pluricanal... não obrigado. Serviço péssimo e enganador!!!
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- Registado: 5/11/2002 5:10
- Localização: Portugal
Google Investors Revel in Stock's Success
10/27/2004 7:56:00 AM
NEW YORK, Oct 27, 2004 (AP Online via COMTEX) -- To all of the Wall Street naysayers, the talking heads and the bearish doubters, Cyndi Mackell and her 120 shares of Google Inc. have something to say. "Told you so!" she said with a laugh.
Mackell and other individual investors who jumped at the chance to buy Google stock in the company's initial public offering two months ago can be forgiven for a certain amount of smugness. Having bought shares at $85, Google investors have more than doubled their money and have silenced the numerous critics of Google's Dutch auction IPO.
"The fact that they surprised the market does not surprise me, as it's apparent the market has continuously underestimated the opportunity for Google," said Jake Kaldenbaugh, a business development manager in San Francisco.
Since its IPO on Aug. 19, Google has seen one of the most impressive runups in share price since the heyday of the dot-com era - a 114 percent jump from its offering price as of Tuesday's close. But unlike the dot-com era, few investors seem to be cashing out for the quick buck.
"The number of people who have bought Google and held on to it is really surprising," said Jeff Seely, chief executive officer of Sharebuilder.com, an online brokerage that allows individual investors to accumulate shares through regular partial payments. "It's a new stock, but it's regularly in our top 10 stocks that our customers want to accumulate."
Seely said that of the more than 5,000 Sharebuilder.com customers who have accumulated Google stock, only 13 percent have sold part or all of their shares.
"I think it shows a lot of maturity among investors, and it certainly shows that Google has matured as a stock," Seely said.
Back in August, it was easy to underestimate Google as a risky, immature company. When it announced a target price of $108 to $135 per share, conventional wisdom held that the price was way too high, and would discourage the mom-and-pop investors that Google seemed to target with its open auction.
When Google lowered its target price to $85 to $95 per share just before going public, analysts felt that the auction system had failed miserably. A final price of $85 seemed to justify the feeling. Where was the investor confidence in Google if they had bid it down that low?
On Aug. 19, Google let its stock do the talking. GOOG opened at $100.01 its first day of trading and has steadily risen ever since, closing at $149.38 on Oct. 21, right before its earnings report was released.
The earnings report was really the last chance for the company's detractors to make a stand, but Google silenced them. For the third quarter, Google earned 70 cents per share, far outstripping Wall Street's expectations of 59 cents. The company brought in $805.9 million in revenues, more than twice the $393.9 million from the third quarter a year ago.
"For me, that was the point when I knew I had made the best investment decision of my life," said Mackell, a Philadelphia native working in Venezuela. "When everybody was saying it was too risky or too unknown, I knew it would be good, and I was right."
Earnings like that could not be argued with. The next morning, Prudential Securities, which had already rated Google a "buy," increased its price target on the company to $200 per share. At the start of trading on Oct. 22, Google opened at $170.32 and closed at $172.43. On Monday, it climbed to an intraday high of $194.43, and closed Tuesday at $181.50, down $5.60, after a typical spate of post-earnings profit-taking.
Of course, if the dot-com era taught us anything, it's that there's always the chance that any stock could tank in a relatively short amount of time, and the risk of investing in any stock certainly applies to Google. However, despite the chance to turn a fast profit, few Google investors appear to be in any mood to sell.
"I'm planning to sit on this one," said Vuong Khan, a technology worker from New Jersey who bought 44 shares in the Dutch auction. His $3,740 stake in Google is now worth $7,986. "You buy a stock like this to hold on to and watch it grow."
Mackell is adamant about holding on to her shares, despite her substantial gains. She purchased 120 shares in the auction for $85 each, paying $10,200, not including any fees from her broker. As of Tuesday's close, her shares were worth $21,780 - a profit of $11,580.
"I can't imagine selling, at least not for a while," Mackell said. "I think there's still potential there. Their numbers are very good, and I'm very optimistic about their future earnings."
Spoken like a true investor.
Copyright 2004 Associated Press, All rights reserved
10/27/2004 7:56:00 AM
NEW YORK, Oct 27, 2004 (AP Online via COMTEX) -- To all of the Wall Street naysayers, the talking heads and the bearish doubters, Cyndi Mackell and her 120 shares of Google Inc. have something to say. "Told you so!" she said with a laugh.
Mackell and other individual investors who jumped at the chance to buy Google stock in the company's initial public offering two months ago can be forgiven for a certain amount of smugness. Having bought shares at $85, Google investors have more than doubled their money and have silenced the numerous critics of Google's Dutch auction IPO.
"The fact that they surprised the market does not surprise me, as it's apparent the market has continuously underestimated the opportunity for Google," said Jake Kaldenbaugh, a business development manager in San Francisco.
Since its IPO on Aug. 19, Google has seen one of the most impressive runups in share price since the heyday of the dot-com era - a 114 percent jump from its offering price as of Tuesday's close. But unlike the dot-com era, few investors seem to be cashing out for the quick buck.
"The number of people who have bought Google and held on to it is really surprising," said Jeff Seely, chief executive officer of Sharebuilder.com, an online brokerage that allows individual investors to accumulate shares through regular partial payments. "It's a new stock, but it's regularly in our top 10 stocks that our customers want to accumulate."
Seely said that of the more than 5,000 Sharebuilder.com customers who have accumulated Google stock, only 13 percent have sold part or all of their shares.
"I think it shows a lot of maturity among investors, and it certainly shows that Google has matured as a stock," Seely said.
Back in August, it was easy to underestimate Google as a risky, immature company. When it announced a target price of $108 to $135 per share, conventional wisdom held that the price was way too high, and would discourage the mom-and-pop investors that Google seemed to target with its open auction.
When Google lowered its target price to $85 to $95 per share just before going public, analysts felt that the auction system had failed miserably. A final price of $85 seemed to justify the feeling. Where was the investor confidence in Google if they had bid it down that low?
On Aug. 19, Google let its stock do the talking. GOOG opened at $100.01 its first day of trading and has steadily risen ever since, closing at $149.38 on Oct. 21, right before its earnings report was released.
The earnings report was really the last chance for the company's detractors to make a stand, but Google silenced them. For the third quarter, Google earned 70 cents per share, far outstripping Wall Street's expectations of 59 cents. The company brought in $805.9 million in revenues, more than twice the $393.9 million from the third quarter a year ago.
"For me, that was the point when I knew I had made the best investment decision of my life," said Mackell, a Philadelphia native working in Venezuela. "When everybody was saying it was too risky or too unknown, I knew it would be good, and I was right."
Earnings like that could not be argued with. The next morning, Prudential Securities, which had already rated Google a "buy," increased its price target on the company to $200 per share. At the start of trading on Oct. 22, Google opened at $170.32 and closed at $172.43. On Monday, it climbed to an intraday high of $194.43, and closed Tuesday at $181.50, down $5.60, after a typical spate of post-earnings profit-taking.
Of course, if the dot-com era taught us anything, it's that there's always the chance that any stock could tank in a relatively short amount of time, and the risk of investing in any stock certainly applies to Google. However, despite the chance to turn a fast profit, few Google investors appear to be in any mood to sell.
"I'm planning to sit on this one," said Vuong Khan, a technology worker from New Jersey who bought 44 shares in the Dutch auction. His $3,740 stake in Google is now worth $7,986. "You buy a stock like this to hold on to and watch it grow."
Mackell is adamant about holding on to her shares, despite her substantial gains. She purchased 120 shares in the auction for $85 each, paying $10,200, not including any fees from her broker. As of Tuesday's close, her shares were worth $21,780 - a profit of $11,580.
"I can't imagine selling, at least not for a while," Mackell said. "I think there's still potential there. Their numbers are very good, and I'm very optimistic about their future earnings."
Spoken like a true investor.
Copyright 2004 Associated Press, All rights reserved
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Shopping.com Shares Soar 60 Pct. in IPO
10/26/2004 7:43:00 PM
SAN FRANCISCO, Oct 26, 2004 (AP Online via COMTEX) -- The shares of e-commerce comparison site Shopping.com Ltd. surged 60 percent in their stock market debut Tuesday amid signs investors may have renewed affection for Internet companies.
Driven by unexpectedly strong demand, Shopping.com priced its initial public offering at $18 per share Monday night, up from the company's $15 target. The shares, trading under the ticker symbol "SHOP," then climbed another $10.80 to close Tuesday at $28.80 on the Nasdaq Stock Market.
Other companies that have completed an IPO this year have averaged a 9 percent gain in their first day of trading, according to Renaissance Capital, a Greenwich, Conn. research firm.
Israel-based Shopping.com, with U.S. headquarters in a suburb just south of San Francisco, raised $80.8 million, after expenses, with its IPO of 5.06 million shares. Company insiders sold 1.81 million shares in the IPO. Tuesday's rapid run-up in the stock market gave the 300-employee company a market value of $800 million.
Shopping.com has developed one of the world's most popular e-commerce sites by offering consumers a free service that compares prices Internet merchants charge for various products. The company makes money on referral fees paid by the participating merchants.
Although Shopping.com attracted 15 million unique visitors last month, it's hardly a household name - unlike other high-flying Internet companies like Google Inc., Yahoo Inc., eBay Inc. and Amazon.com Inc.
The 6-year-old service, originally called DealTime, also is relatively small, with its annual revenue on a pace to reach about $115 million this year.
IPO analyst David Menlow said Shopping.com's debut appears to be riding on the coattails of Google's stock, which has more than doubled in value since going public in August. During the first six months of this year, Shopping.com generated 43 percent of its revenue from business links with Google.
"I would put investors in the 'deer-in-the-headlights' category right now," said Menlow, president of the IPO Financial Network. "There are a lot of them who missed out on the Google IPO and now they are looking around to see if there are any other opportunities out there. They are looking for anything to get the sizzle back in the marketplace."
Google's soaring stock seems to be lifting the market values of other online businesses. Since Google's IPO, the Dow Jones composite Internet index of stocks has risen by 16 percent. Meanwhile, the blue-chip Dow Jones industrial average has declined by 2 percent during the same period while the tech-laden Nasdaq composite index has gained 6 percent.
Menlow and other market observers still don't believe the recent enthusiasm for Internet stocks heralds a return of the irrational exuberance that dominated the late 1990s and precipitated the devastating dot-com meltdown.
Unlike that giddy era, investors are demanding profits from Internet companies, as well as robust revenue growth.
Shopping.com lost $6.6 million through the first half of this year, but has demonstrated it can turn a profit, earning $6.9 million last year on revenue of $67 million. Revenue so far this year has increased by 70 percent.
"Comparison shopping is still in its infancy and the market potential is huge," said Tamim Mourad, chief executive of PriceGrabber.com, a Shopping.com rival. "That is what investors are factoring into the (Shopping.com) stock price. There are always going to be fears about a mini-bubble forming, but the difference this time is that we are generating real revenue."
Privately held PriceGrabber has been profitable for four years, said Mourad, who wouldn't provide specific figures.
Shopping.com declined to comment Tuesday, citing securities regulations that restrict what management can say publicly after an IPO.
The company navigated through its IPO despite a bit of management turmoil.
Nirav Tolia, Shopping.com's president and chief operating officer, resigned in June after the company received information claiming he had faked part of his educational background and job history, according to documents filed with the Securities and Exchange Commission. The documents didn't detail Tolia's alleged fabrications.
Investors in a Epinions, a company that Shopping.com bought last year, also are threatening trouble.
The company warned in its IPO papers a group of Epinions investors are demanding damages for alleged insider misconduct by Tolia and others when Shopping.com negotiated the takeover. The Epinions investors want to be paid 1.8 million to 2.4 million Shopping.com shares - a stake worth $52 million to $69 million after Tuesday's trading.
Copyright 2004 Associated Press, All rights reserved
10/26/2004 7:43:00 PM
SAN FRANCISCO, Oct 26, 2004 (AP Online via COMTEX) -- The shares of e-commerce comparison site Shopping.com Ltd. surged 60 percent in their stock market debut Tuesday amid signs investors may have renewed affection for Internet companies.
Driven by unexpectedly strong demand, Shopping.com priced its initial public offering at $18 per share Monday night, up from the company's $15 target. The shares, trading under the ticker symbol "SHOP," then climbed another $10.80 to close Tuesday at $28.80 on the Nasdaq Stock Market.
Other companies that have completed an IPO this year have averaged a 9 percent gain in their first day of trading, according to Renaissance Capital, a Greenwich, Conn. research firm.
Israel-based Shopping.com, with U.S. headquarters in a suburb just south of San Francisco, raised $80.8 million, after expenses, with its IPO of 5.06 million shares. Company insiders sold 1.81 million shares in the IPO. Tuesday's rapid run-up in the stock market gave the 300-employee company a market value of $800 million.
Shopping.com has developed one of the world's most popular e-commerce sites by offering consumers a free service that compares prices Internet merchants charge for various products. The company makes money on referral fees paid by the participating merchants.
Although Shopping.com attracted 15 million unique visitors last month, it's hardly a household name - unlike other high-flying Internet companies like Google Inc., Yahoo Inc., eBay Inc. and Amazon.com Inc.
The 6-year-old service, originally called DealTime, also is relatively small, with its annual revenue on a pace to reach about $115 million this year.
IPO analyst David Menlow said Shopping.com's debut appears to be riding on the coattails of Google's stock, which has more than doubled in value since going public in August. During the first six months of this year, Shopping.com generated 43 percent of its revenue from business links with Google.
"I would put investors in the 'deer-in-the-headlights' category right now," said Menlow, president of the IPO Financial Network. "There are a lot of them who missed out on the Google IPO and now they are looking around to see if there are any other opportunities out there. They are looking for anything to get the sizzle back in the marketplace."
Google's soaring stock seems to be lifting the market values of other online businesses. Since Google's IPO, the Dow Jones composite Internet index of stocks has risen by 16 percent. Meanwhile, the blue-chip Dow Jones industrial average has declined by 2 percent during the same period while the tech-laden Nasdaq composite index has gained 6 percent.
Menlow and other market observers still don't believe the recent enthusiasm for Internet stocks heralds a return of the irrational exuberance that dominated the late 1990s and precipitated the devastating dot-com meltdown.
Unlike that giddy era, investors are demanding profits from Internet companies, as well as robust revenue growth.
Shopping.com lost $6.6 million through the first half of this year, but has demonstrated it can turn a profit, earning $6.9 million last year on revenue of $67 million. Revenue so far this year has increased by 70 percent.
"Comparison shopping is still in its infancy and the market potential is huge," said Tamim Mourad, chief executive of PriceGrabber.com, a Shopping.com rival. "That is what investors are factoring into the (Shopping.com) stock price. There are always going to be fears about a mini-bubble forming, but the difference this time is that we are generating real revenue."
Privately held PriceGrabber has been profitable for four years, said Mourad, who wouldn't provide specific figures.
Shopping.com declined to comment Tuesday, citing securities regulations that restrict what management can say publicly after an IPO.
The company navigated through its IPO despite a bit of management turmoil.
Nirav Tolia, Shopping.com's president and chief operating officer, resigned in June after the company received information claiming he had faked part of his educational background and job history, according to documents filed with the Securities and Exchange Commission. The documents didn't detail Tolia's alleged fabrications.
Investors in a Epinions, a company that Shopping.com bought last year, also are threatening trouble.
The company warned in its IPO papers a group of Epinions investors are demanding damages for alleged insider misconduct by Tolia and others when Shopping.com negotiated the takeover. The Epinions investors want to be paid 1.8 million to 2.4 million Shopping.com shares - a stake worth $52 million to $69 million after Tuesday's trading.
Copyright 2004 Associated Press, All rights reserved
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NorthStar, Shopping.com IPOs price
NorthStar, Shopping.com IPOs price
By Carolyn Pritchard, CBS MarketWatch.com
Last Update: 9:11 PM ET Oct. 25, 2004
SAN FRANCISCO (CBS.MW) - Shopping.com and NorthStar Realty Finance saw their initial public offerings price late Monday for next-day trade.
Shopping.com, (SHOP: news, chart, profile), a Brisbane, Calif.-based e-commerce firm, priced its IPO of 6.9 million shares at $18 each,, raising $124.2 million.
The pricing came in at the high end of its $16 to $18 range, which was lifted from a range of $14 to $16 earlier in the session.
Shopping.com, which received about 38 percent of its 2003 revenue from the company's relationship with Google (GOOG: news, chart, profile), lists Bank of America, UBS Capital and American Online as shareholders.
The IPO from Shopping.com marks its second attempt to go public. Back in 2000, it filed an IPO under the name DealTime. In 2003, it merged with Epinions.com.
Goldman Sachs and CS First Boston led the deal's underwriting.
Shares of Shopping.com are due to start trading on the Nasdaq Tuesday.
As well, NorthStar Realty's (NRF: news, chart, profile) IPO of 20 million shares priced at $9, according to Dealogic, raising $180 million.
The pricing came in at the low end of its expected $9 to $11 range. Friedman Billings Ramsey led the deal's underwriting.
The real estate investment trust is a commercial real-estate company that makes fixed income, structured finance and net lease investments in real-estate assets.
Shares of the New York REIT are due to begin trading on the New York Stock Exchange Tuesday.
By Carolyn Pritchard, CBS MarketWatch.com
Last Update: 9:11 PM ET Oct. 25, 2004
SAN FRANCISCO (CBS.MW) - Shopping.com and NorthStar Realty Finance saw their initial public offerings price late Monday for next-day trade.
Shopping.com, (SHOP: news, chart, profile), a Brisbane, Calif.-based e-commerce firm, priced its IPO of 6.9 million shares at $18 each,, raising $124.2 million.
The pricing came in at the high end of its $16 to $18 range, which was lifted from a range of $14 to $16 earlier in the session.
Shopping.com, which received about 38 percent of its 2003 revenue from the company's relationship with Google (GOOG: news, chart, profile), lists Bank of America, UBS Capital and American Online as shareholders.
The IPO from Shopping.com marks its second attempt to go public. Back in 2000, it filed an IPO under the name DealTime. In 2003, it merged with Epinions.com.
Goldman Sachs and CS First Boston led the deal's underwriting.
Shares of Shopping.com are due to start trading on the Nasdaq Tuesday.
As well, NorthStar Realty's (NRF: news, chart, profile) IPO of 20 million shares priced at $9, according to Dealogic, raising $180 million.
The pricing came in at the low end of its expected $9 to $11 range. Friedman Billings Ramsey led the deal's underwriting.
The real estate investment trust is a commercial real-estate company that makes fixed income, structured finance and net lease investments in real-estate assets.
Shares of the New York REIT are due to begin trading on the New York Stock Exchange Tuesday.
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Google market value eclipses Yahoo
Financial Times
By Richard Waters in San Francisco
Oct 25 2004 21:56
Google's stock market value eclipsed its bigger and more diversified rival Yahoo! for the first time on Monday as investors continued to clamor for a piece of the only internet company with full exposure to the booming search-related advertising business.
The symbolic moment signalled a reversal of the thinking that had dominated most investment analyses in the build-up to Google's initial public offering: that the company should trade at a discount to Yahoo, which has a longer track record and more ways to make money than just the search business.
Instead, Google's unexpectedly strong quarterly earnings last week have ignited a stampede into the pure-play search engine company.
“Investors are taking the latest quarter's performance and assuming that it's going to continue for a while,” said Youssef Squali, an analyst at Jefferies in New York. Although Yahoo's virtues of diversification and solid management are likely to reassert themselves, he added, the shift might not happen until next year, after what is likely to be a seasonally very strong quarter for Google.
Like other Wall Street fans of Google, Mr Squali raised his forecast for the company's shares after its earnings on Thursday, only to see his new $160 target instantly overtaken.
Googles' shares rose nearly 9 per cent on Monday to $187.40, pushing its stock market value to $50.8bn. That is nearly $2bn more than Yahoo, whose net revenues were 30 per cent higher than Google's in the most recent quarter, and leaves Google as the second most-valuable internet company behind eBay, which is worth $63.4bn.
Terry Semel, Yahoo's chairman, said in an interview after his own company's earnings earlier this month that its ability to draw on both search engine advertising as well as other forms of online brand advertising gave it an advantage over Google. The broader reach meant Yahoo had grown strongly both during the second quarter, when search advertising cooled, as well as the third, when search bounced back strongly, he added.
However, the growth of Yahoo's search engine business has failed to keep pace with Google, according to analysts. In the latest quarter, Google's international search income jumped 142 per cent compared to the 112 per cent advance at Yahoo, while its US business grew 90 per cent compared to the 37 per cent gain at Yahoo, according to an estimate by Bill Lennan, an analyst at WR Hambrecht.
Financial Times
By Richard Waters in San Francisco
Oct 25 2004 21:56
Google's stock market value eclipsed its bigger and more diversified rival Yahoo! for the first time on Monday as investors continued to clamor for a piece of the only internet company with full exposure to the booming search-related advertising business.
The symbolic moment signalled a reversal of the thinking that had dominated most investment analyses in the build-up to Google's initial public offering: that the company should trade at a discount to Yahoo, which has a longer track record and more ways to make money than just the search business.
Instead, Google's unexpectedly strong quarterly earnings last week have ignited a stampede into the pure-play search engine company.
“Investors are taking the latest quarter's performance and assuming that it's going to continue for a while,” said Youssef Squali, an analyst at Jefferies in New York. Although Yahoo's virtues of diversification and solid management are likely to reassert themselves, he added, the shift might not happen until next year, after what is likely to be a seasonally very strong quarter for Google.
Like other Wall Street fans of Google, Mr Squali raised his forecast for the company's shares after its earnings on Thursday, only to see his new $160 target instantly overtaken.
Googles' shares rose nearly 9 per cent on Monday to $187.40, pushing its stock market value to $50.8bn. That is nearly $2bn more than Yahoo, whose net revenues were 30 per cent higher than Google's in the most recent quarter, and leaves Google as the second most-valuable internet company behind eBay, which is worth $63.4bn.
Terry Semel, Yahoo's chairman, said in an interview after his own company's earnings earlier this month that its ability to draw on both search engine advertising as well as other forms of online brand advertising gave it an advantage over Google. The broader reach meant Yahoo had grown strongly both during the second quarter, when search advertising cooled, as well as the third, when search bounced back strongly, he added.
However, the growth of Yahoo's search engine business has failed to keep pace with Google, according to analysts. In the latest quarter, Google's international search income jumped 142 per cent compared to the 112 per cent advance at Yahoo, while its US business grew 90 per cent compared to the 37 per cent gain at Yahoo, according to an estimate by Bill Lennan, an analyst at WR Hambrecht.
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Vou seguir de perto duas das IPO desta semana:
DreamWorks Animation
Shopping.com
este ano, 7 IPO já duplicaram o seu valor...quem diz 7 diz 9
Já agora deixo o gráfico do Google por curiosidade
Fecho:
GOOG @ 187,40 8,68%
3:30pm 10/25/04
72 stocks touch 52-wk lows on Nasdaq; 53 52-wk highs (OATS, STEM, GOOG)
By Mark Cotton
NEW YORK (CBS.MW) -- As many as 72 stocks touched 52-week lows on the Nasdaq exchange by late afternoon Monday, while 53 had hit 52-week highs.
On the downside, Wild Oats Markets Inc (OATS) hit a low of $5.93 after the natural-and organic-foods chain warned of a third quarter and 2004 loss.
Among the winners, Stemcells Inc (STEM) hit a high of $4.87 amid a flurry of science reports that stem cells were being used successfully in laboratory animals to treat such maladies as spinal cord injury, Parkinson's disease and Amyotrophic Lateral Sclerosis.
Google (GOOG) also hit a high of $194.43, pushing the Internet search engine's market value over $50 billion and past the value of Yahoo Inc. (YHOO) , a mere two months after its initial public offering.
DreamWorks Animation
Shopping.com
este ano, 7 IPO já duplicaram o seu valor...quem diz 7 diz 9
Já agora deixo o gráfico do Google por curiosidade
Fecho:
GOOG @ 187,40 8,68%
3:30pm 10/25/04
72 stocks touch 52-wk lows on Nasdaq; 53 52-wk highs (OATS, STEM, GOOG)
By Mark Cotton
NEW YORK (CBS.MW) -- As many as 72 stocks touched 52-week lows on the Nasdaq exchange by late afternoon Monday, while 53 had hit 52-week highs.
On the downside, Wild Oats Markets Inc (OATS) hit a low of $5.93 after the natural-and organic-foods chain warned of a third quarter and 2004 loss.
Among the winners, Stemcells Inc (STEM) hit a high of $4.87 amid a flurry of science reports that stem cells were being used successfully in laboratory animals to treat such maladies as spinal cord injury, Parkinson's disease and Amyotrophic Lateral Sclerosis.
Google (GOOG) also hit a high of $194.43, pushing the Internet search engine's market value over $50 billion and past the value of Yahoo Inc. (YHOO) , a mere two months after its initial public offering.
- Anexos
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- goog daily.JPG (46.78 KiB) Visualizado 5603 vezes
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- goog.JPG (54.31 KiB) Visualizado 5596 vezes
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Acabou de romper os 190... 191 e a subir..
Ou agora no final da sessão assitimos a um ligeiro sell off (Os daytraders devem estar a aproveitar o momento..)..
Ou então atinge os 200 já hoje... ainda temos 2horas de trading pela frente... impressionante, nem mesmo nos tempos de 1999/2000
Ou agora no final da sessão assitimos a um ligeiro sell off (Os daytraders devem estar a aproveitar o momento..)..
Ou então atinge os 200 já hoje... ainda temos 2horas de trading pela frente... impressionante, nem mesmo nos tempos de 1999/2000
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- Registado: 11/5/2003 12:11
- Localização: Lisboa
Shopping.com is IPO of the week
Shopping.com is IPO of the week
Commentary: Renaissance Capital eyes e-commerce firm
By Renaissance Capital
Last Update: 12:10 PM ET Oct. 25, 2004
Editor's Note: Renaissance Capital runs the IPO Plus Fund (IPOSX: news, chart, profile). The fund may have investments in the securities mentioned in its report. For more information, see the company's Web site at www.ipohome.com.
GREENWICH, Conn. (CBS.MW) -- Activity in the IPO market kicks into high gear this week, with more than 10 deals vying for investors' attention. While we saw similar levels of activity during June and July, we cannot remember the last time there have been so many exciting deals in the span of one week. That made things a little challenging in terms of landing on our featured IPO. After much debate, the honor goes to what may end up being the hottest deal on the docket: Shopping.com, the Web's largest comparison shopping site.
Israel-based Shopping.com (SHOP: news, chart, profile) hopes to price 6.9 million shares at $16 to $18, up from its earlier level of $14 to $16.
Lead managers Goldman Sachs and CS First Boston plan to finalize the deal Monday night for trading Tuesday.
A proven dot-com
Shopping.com has successfully taken on the task of helping consumers solve a common e-commerce challenge. That is, trying to figure out where to purchase a product at the best possible price, without manually filtering through hundreds of sites for the answer. Through its free Web sites - of which its flagship site is appropriately named Shopping.com - the company provides an easy-to-use search engine for online shoppers.
Consumers punch in what they are looking for and Shopping.com spits out the exact places to purchase the product, along with the merchants' listed prices and reputations.
Akin to the model that has made Yahoo (YHOO: news, chart, profile) and Google (GOOG: news, chart, profile) online search powerhouses, Shopping.com gets a fee from merchants each time a user clicks through to a merchant's site. Merchants are happy to pay the so-called referral fee, which starts at 5 cents to $1, depending on the product or category, since Shopping.com is generating highly targeted traffic even if an actual purchase isn't made.
In fact, about 95 percent of the fees that merchants pay Shopping.com aren't contingent on the actual purchasing of a product.
Shopping.com is by no means new to the IPO game, having originally filed to public more than four years ago, just months before the Internet bubble burst.
Then named DealTime, the company was equipped with a mere $525,000 in trailing sales, and mounting losses. Having missed the Internet boom window, the company was forced to act decisively to keep itself afloat and drive to profitability. Despite several restructuring initiatives, the company continued to grow, and in 2003 it merged with another Internet boom survivor - profitable consumer reviews site Epinions.com.
Today, Shopping.com is the largest online comparison and consumer reviews shopping service in the U.S. with more than 20 million users per month. It is also the fourth largest online shopping destination behind only EBay (EBAY: news, chart, profile), Amazon (AMZN: news, chart, profile) and Yahoo, and it now comes to market with a track record of growth and earnings.
Over the last three years, annual revenue increased from $13 million in 2001 to $67 million in 2003. More importantly, losses have turned into profits, with 2003 marking its first full year of profitability both on a GAAP and pro forma basis. For the 12 months ended June 30, the company generated almost $16 million in operating cash flow (or EBITDA) on $84 million in total revenue.
Buyer beware
As one would expect, there are risks to the story. For one, the company derives over 45 percent of its revenue from search giant Google, which operates its own comparison shopping service, known as Froogle. According to management, its relationship with Google remains strong. However, with the various agreements it has with Google expiring over the next few years, there is a question about whether Google will choose to become a more direct competitor.
Also, while we are intrigued by the opportunities both in the U.S. and abroad, its growth and planned expansion won't come without significant costs. To date, the company has leveraged a huge part-time staff to keep costs down and has maintained relatively low levels of capital spending. However, to build a successful enterprise in the long run, we believe Shopping.com will require the commitment of full-time employees, which will inevitably lead to higher overhead.
Finally, plans to expand internationally as well as to adequately support its huge user base will require substantial investments in infrastructure. Leading Internet destinations such as Yahoo, eBay and Google all spend significant amounts on computers and technology to ensure that their services are robust and reliable. To keep its users happy and to grow comfortably, we believe Shopping.com will have to step up such spending.
Fundamentally sound Internet stories hot once again
One need not look any further than the numbers to see that Internet stories are once again in vogue. That's because by and large the only Internet companies that investors are interested in are ones that can prove that their business model works. Nearly all the deals that have come from the dot-com space this year have been profitable, and the ones that haven't are pretty close to it.
All eight pure-play Internet companies to go public this year are trading above their respective IPO prices, and the average overall return stands at a lofty 49 percent.
That's more than three times higher than the 14 percet return held by the average IPO year-to-date. Looking at only those Internet companies that were profitable and had revenue in excess of $20 million at the time of their offering, and the average return shoots up to 71 percent. The top performers: Google (GOOG: news, chart, profile), Marchex (MCHX: news, chart, profile) and Greenfield Online (SRVY: news, chart, profile).
Valuation provides ample room for upside
Besides its solid results to date and attractive growth prospects, Shopping.com is coming to market at a noticeable discount to most of its peers. Admittedly, it deserves to trade at a discount to the more established Internet stocks, but we believe it can command a multiple on par with other fast-growing Internet search, marketing and e-commerce companies, including FindWhat.com (FWHT: news, chart, profile), ValueClick (VLCK: news, chart, profile), Ask Jeeves (ASKJ: news, chart, profile) and Infospace (INSP: news, chart, profile).
As a group, these companies are trading at multiples to forward sales and earnings of 3.8 times and 26.1 times, respectively.
Given its clear standing as an Internet leader, along with a profitable business model, exciting growth prospects, and an attractive valuation, we expect demand for this deal to be exceptionally strong.
In many respects, Shopping.com has done to online shopping what Google has done to online search.
Shopping.com may not have the same media buzz of Google, but it is one that investors will definitely want to place in their IPO shopping cart, especially ahead of the busiest shopping season of the year.
The honorable mentions
Below is a brief look at several deals that are also likely to fair well out of the gate.
Shrek's creator sets up for a blockbuster-size IPO
Leading CG animation studio DreamWorks Animation SKG (DWA: news, chart, profile), with backing from Steven Spielberg and Paul Allen, is sure to generate a lot of buzz. Aside from its big-name executives and investors and the well-known successes of "Shrek" and "Shrek 2", DreamWorks couldn't pick a more opportune time to launch its IPO.
"Shark Tale", the latest debut from DreamWorks Animation, has grossed $137 million in U.S. box office receipts in just four weeks. Hoping itself to gross nearly $700 million from the offering, DreamWorks is selling 29 million shares, including 4 million from insiders, at a price of $23 to $25. Lead underwriters Goldman Sachs and JP Morgan plan to price the deal Wednesday night for trading on Thursday.
A retail concept coming to a mall near you
Build-A-Bear Workshop (BBW: news, chart, profile), a unique mall-based retail concept targeting young children with an interactive make-your-own-teddy bear experience, plans to raise $116 million through CS First Boston and Citigroup. Although the broader retail sector has been mixed, we believe investors will be interested in this differentiated retail growth story.
In less than five years, Build-A-Bear has grown its store base from 14 to 165 locations, and total revenue has increased from $18 million in 1999, to $275 million in the latest 12 months. Build-A-Bear hopes to open around 25-30 new stores a year domestically, and will look to franchise in international locations. The company plans to sell 6.8 million shares at $16 to $18 apiece. Pricing is tentatively set for Wednesday night for trading on Thursday.
A first class money manager
Since former Air Force pilot John Calamos Sr. started up a specialized convertible bond shop in the late 70's, Calamos Asset Management (CLMS: news, chart, profile) has grown into a leading diversified investment manager with more than $33 billion in assets. More than 90 percent of its funds hold a four- or five-star rating from Morningstar, which demonstrates that it has produced solid results in both good times and bad.
The actual structure of the company is a bit awry, with the Calamos family being the primary beneficiaries of company profits, and proposed regulations could make some investors cautious of the company's potential.
Nevertheless, Calamos should be a big cash generator and its products and management have a history of strong performance.
Citigroup and Merrill Lynch are acting as joint book running managers on the deal, which is slated to price Wednesday evening. The company is offering 18 million shares at a proposed price of $15.50 to $17.50.
Barry Diller's foray into China
The last Chinese Internet firm - China Finance Online (JRJC: news, chart, profile) quickly deflated after a strong pricing and opening pop, but emerging online travel booker ELong (LONG: news, chart, profile) has a couple things going for it that sets it apart from being viewed as just another small Chinese Internet operation. For one, its most direct comparable Ctrip.com International (CTRP: news, chart, profile) is up 135 percent from its initial public offering late last year.
That tells us that there is significant interest in China's $47 billion travel industry, particularly as it moves online, an area that is far less developed than the U.S. online travel sector.
Perhaps of more significance is the fact that ELong is backed by Barry Diller's e-commerce conglomerate InterActiveCorp (IACI: news, chart, profile), which will retain a 49.9 percent stake in the company after the IPO.
The backing by InterActiveCorp, which has a track record of making an initial investment before fully acquiring a number of leading Internet properties, removes some of the risk of owning a small foreign company with a short operating history.
The smallest offering of the week, ELong is selling 4.6 million American depositary shares at a price of $11.50 to $13.50. Deutsche Bank Securities and WR Hambrecht are managing the deal.
Commentary: Renaissance Capital eyes e-commerce firm
By Renaissance Capital
Last Update: 12:10 PM ET Oct. 25, 2004
Editor's Note: Renaissance Capital runs the IPO Plus Fund (IPOSX: news, chart, profile). The fund may have investments in the securities mentioned in its report. For more information, see the company's Web site at www.ipohome.com.
GREENWICH, Conn. (CBS.MW) -- Activity in the IPO market kicks into high gear this week, with more than 10 deals vying for investors' attention. While we saw similar levels of activity during June and July, we cannot remember the last time there have been so many exciting deals in the span of one week. That made things a little challenging in terms of landing on our featured IPO. After much debate, the honor goes to what may end up being the hottest deal on the docket: Shopping.com, the Web's largest comparison shopping site.
Israel-based Shopping.com (SHOP: news, chart, profile) hopes to price 6.9 million shares at $16 to $18, up from its earlier level of $14 to $16.
Lead managers Goldman Sachs and CS First Boston plan to finalize the deal Monday night for trading Tuesday.
A proven dot-com
Shopping.com has successfully taken on the task of helping consumers solve a common e-commerce challenge. That is, trying to figure out where to purchase a product at the best possible price, without manually filtering through hundreds of sites for the answer. Through its free Web sites - of which its flagship site is appropriately named Shopping.com - the company provides an easy-to-use search engine for online shoppers.
Consumers punch in what they are looking for and Shopping.com spits out the exact places to purchase the product, along with the merchants' listed prices and reputations.
Akin to the model that has made Yahoo (YHOO: news, chart, profile) and Google (GOOG: news, chart, profile) online search powerhouses, Shopping.com gets a fee from merchants each time a user clicks through to a merchant's site. Merchants are happy to pay the so-called referral fee, which starts at 5 cents to $1, depending on the product or category, since Shopping.com is generating highly targeted traffic even if an actual purchase isn't made.
In fact, about 95 percent of the fees that merchants pay Shopping.com aren't contingent on the actual purchasing of a product.
Shopping.com is by no means new to the IPO game, having originally filed to public more than four years ago, just months before the Internet bubble burst.
Then named DealTime, the company was equipped with a mere $525,000 in trailing sales, and mounting losses. Having missed the Internet boom window, the company was forced to act decisively to keep itself afloat and drive to profitability. Despite several restructuring initiatives, the company continued to grow, and in 2003 it merged with another Internet boom survivor - profitable consumer reviews site Epinions.com.
Today, Shopping.com is the largest online comparison and consumer reviews shopping service in the U.S. with more than 20 million users per month. It is also the fourth largest online shopping destination behind only EBay (EBAY: news, chart, profile), Amazon (AMZN: news, chart, profile) and Yahoo, and it now comes to market with a track record of growth and earnings.
Over the last three years, annual revenue increased from $13 million in 2001 to $67 million in 2003. More importantly, losses have turned into profits, with 2003 marking its first full year of profitability both on a GAAP and pro forma basis. For the 12 months ended June 30, the company generated almost $16 million in operating cash flow (or EBITDA) on $84 million in total revenue.
Buyer beware
As one would expect, there are risks to the story. For one, the company derives over 45 percent of its revenue from search giant Google, which operates its own comparison shopping service, known as Froogle. According to management, its relationship with Google remains strong. However, with the various agreements it has with Google expiring over the next few years, there is a question about whether Google will choose to become a more direct competitor.
Also, while we are intrigued by the opportunities both in the U.S. and abroad, its growth and planned expansion won't come without significant costs. To date, the company has leveraged a huge part-time staff to keep costs down and has maintained relatively low levels of capital spending. However, to build a successful enterprise in the long run, we believe Shopping.com will require the commitment of full-time employees, which will inevitably lead to higher overhead.
Finally, plans to expand internationally as well as to adequately support its huge user base will require substantial investments in infrastructure. Leading Internet destinations such as Yahoo, eBay and Google all spend significant amounts on computers and technology to ensure that their services are robust and reliable. To keep its users happy and to grow comfortably, we believe Shopping.com will have to step up such spending.
Fundamentally sound Internet stories hot once again
One need not look any further than the numbers to see that Internet stories are once again in vogue. That's because by and large the only Internet companies that investors are interested in are ones that can prove that their business model works. Nearly all the deals that have come from the dot-com space this year have been profitable, and the ones that haven't are pretty close to it.
All eight pure-play Internet companies to go public this year are trading above their respective IPO prices, and the average overall return stands at a lofty 49 percent.
That's more than three times higher than the 14 percet return held by the average IPO year-to-date. Looking at only those Internet companies that were profitable and had revenue in excess of $20 million at the time of their offering, and the average return shoots up to 71 percent. The top performers: Google (GOOG: news, chart, profile), Marchex (MCHX: news, chart, profile) and Greenfield Online (SRVY: news, chart, profile).
Valuation provides ample room for upside
Besides its solid results to date and attractive growth prospects, Shopping.com is coming to market at a noticeable discount to most of its peers. Admittedly, it deserves to trade at a discount to the more established Internet stocks, but we believe it can command a multiple on par with other fast-growing Internet search, marketing and e-commerce companies, including FindWhat.com (FWHT: news, chart, profile), ValueClick (VLCK: news, chart, profile), Ask Jeeves (ASKJ: news, chart, profile) and Infospace (INSP: news, chart, profile).
As a group, these companies are trading at multiples to forward sales and earnings of 3.8 times and 26.1 times, respectively.
Given its clear standing as an Internet leader, along with a profitable business model, exciting growth prospects, and an attractive valuation, we expect demand for this deal to be exceptionally strong.
In many respects, Shopping.com has done to online shopping what Google has done to online search.
Shopping.com may not have the same media buzz of Google, but it is one that investors will definitely want to place in their IPO shopping cart, especially ahead of the busiest shopping season of the year.
The honorable mentions
Below is a brief look at several deals that are also likely to fair well out of the gate.
Shrek's creator sets up for a blockbuster-size IPO
Leading CG animation studio DreamWorks Animation SKG (DWA: news, chart, profile), with backing from Steven Spielberg and Paul Allen, is sure to generate a lot of buzz. Aside from its big-name executives and investors and the well-known successes of "Shrek" and "Shrek 2", DreamWorks couldn't pick a more opportune time to launch its IPO.
"Shark Tale", the latest debut from DreamWorks Animation, has grossed $137 million in U.S. box office receipts in just four weeks. Hoping itself to gross nearly $700 million from the offering, DreamWorks is selling 29 million shares, including 4 million from insiders, at a price of $23 to $25. Lead underwriters Goldman Sachs and JP Morgan plan to price the deal Wednesday night for trading on Thursday.
A retail concept coming to a mall near you
Build-A-Bear Workshop (BBW: news, chart, profile), a unique mall-based retail concept targeting young children with an interactive make-your-own-teddy bear experience, plans to raise $116 million through CS First Boston and Citigroup. Although the broader retail sector has been mixed, we believe investors will be interested in this differentiated retail growth story.
In less than five years, Build-A-Bear has grown its store base from 14 to 165 locations, and total revenue has increased from $18 million in 1999, to $275 million in the latest 12 months. Build-A-Bear hopes to open around 25-30 new stores a year domestically, and will look to franchise in international locations. The company plans to sell 6.8 million shares at $16 to $18 apiece. Pricing is tentatively set for Wednesday night for trading on Thursday.
A first class money manager
Since former Air Force pilot John Calamos Sr. started up a specialized convertible bond shop in the late 70's, Calamos Asset Management (CLMS: news, chart, profile) has grown into a leading diversified investment manager with more than $33 billion in assets. More than 90 percent of its funds hold a four- or five-star rating from Morningstar, which demonstrates that it has produced solid results in both good times and bad.
The actual structure of the company is a bit awry, with the Calamos family being the primary beneficiaries of company profits, and proposed regulations could make some investors cautious of the company's potential.
Nevertheless, Calamos should be a big cash generator and its products and management have a history of strong performance.
Citigroup and Merrill Lynch are acting as joint book running managers on the deal, which is slated to price Wednesday evening. The company is offering 18 million shares at a proposed price of $15.50 to $17.50.
Barry Diller's foray into China
The last Chinese Internet firm - China Finance Online (JRJC: news, chart, profile) quickly deflated after a strong pricing and opening pop, but emerging online travel booker ELong (LONG: news, chart, profile) has a couple things going for it that sets it apart from being viewed as just another small Chinese Internet operation. For one, its most direct comparable Ctrip.com International (CTRP: news, chart, profile) is up 135 percent from its initial public offering late last year.
That tells us that there is significant interest in China's $47 billion travel industry, particularly as it moves online, an area that is far less developed than the U.S. online travel sector.
Perhaps of more significance is the fact that ELong is backed by Barry Diller's e-commerce conglomerate InterActiveCorp (IACI: news, chart, profile), which will retain a 49.9 percent stake in the company after the IPO.
The backing by InterActiveCorp, which has a track record of making an initial investment before fully acquiring a number of leading Internet properties, removes some of the risk of owning a small foreign company with a short operating history.
The smallest offering of the week, ELong is selling 4.6 million American depositary shares at a price of $11.50 to $13.50. Deutsche Bank Securities and WR Hambrecht are managing the deal.
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DreamWorks Animation IPO
DreamWorks Animation IPO on deck
U-Store-It real estate investment trust debuts
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 4:16 PM ET Oct. 22, 2004
NEW YORK (CBS.MW) - DreamWorks Animation SKG, the digital cartoon unit of the DreamWorks motion picture studio, plans to raise about $700 million in a debut as early as Thursday.
The company behind "Shrek 2" and the recent "Shark Tale" plans to offer to offer 29 million shares at $23 to $25 in its initial public offering.
Pricing has been tentatively scheduled for Wednesday night, with trading beginning Thursday on the New York Stock Exchange under the ticker "DWA."
At the midpoint of its estimated $23 to $25 range, DreamWorks would carry a market capitalization of $2.5 billion, compared with roughly $5 billion for rival Pixar (PIXR: news, chart, profile).
DreamWorks SKG reported net income of $121 million and operating revenue of $341 million in the first six months of the year as it rode the success of its "Shrek" franchise. "Shrek 2," released in May, has become the third-highest grossing film at about $440 million, behind "Titanic" and "Star Wars," according to Boxofficemojo.
The company, controlled by Hollywood moguls Jeffrey Katzenberg, Steven Spielberg and David Geffen, filed to go public in July.
Microsoft (MSFT: news, chart, profile) co-founder Paul Allen will sell 2.33 million shares in the DreamWorks Animation IPO for proceeds of about $55 million. Allen sits on the board of DreamWorks Animation. He also co-founded and has been the primary financial investor in DreamWorks Studios since its founding in October 1994.
Lee Entertainment will sell 368,000 shares, Vivendi Universal and Thomson Inc. will sell about 500,000. Microsoft will sell 89,000 shares.
U-Store-It Trust debuting Friday
U-Store-It Trust's (YSI: news, chart, profile) initial public offering of 25 million shares closed at $16.73, ahead of the $16 price.
The IPO priced below the estimated price range of $17-$19 a share.
The real-estate investment trust and owner of storage facilities around the country raised $400 million via underwriter Lehman Brothers.
U-Store-It real estate investment trust debuts
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 4:16 PM ET Oct. 22, 2004
NEW YORK (CBS.MW) - DreamWorks Animation SKG, the digital cartoon unit of the DreamWorks motion picture studio, plans to raise about $700 million in a debut as early as Thursday.
The company behind "Shrek 2" and the recent "Shark Tale" plans to offer to offer 29 million shares at $23 to $25 in its initial public offering.
Pricing has been tentatively scheduled for Wednesday night, with trading beginning Thursday on the New York Stock Exchange under the ticker "DWA."
At the midpoint of its estimated $23 to $25 range, DreamWorks would carry a market capitalization of $2.5 billion, compared with roughly $5 billion for rival Pixar (PIXR: news, chart, profile).
DreamWorks SKG reported net income of $121 million and operating revenue of $341 million in the first six months of the year as it rode the success of its "Shrek" franchise. "Shrek 2," released in May, has become the third-highest grossing film at about $440 million, behind "Titanic" and "Star Wars," according to Boxofficemojo.
The company, controlled by Hollywood moguls Jeffrey Katzenberg, Steven Spielberg and David Geffen, filed to go public in July.
Microsoft (MSFT: news, chart, profile) co-founder Paul Allen will sell 2.33 million shares in the DreamWorks Animation IPO for proceeds of about $55 million. Allen sits on the board of DreamWorks Animation. He also co-founded and has been the primary financial investor in DreamWorks Studios since its founding in October 1994.
Lee Entertainment will sell 368,000 shares, Vivendi Universal and Thomson Inc. will sell about 500,000. Microsoft will sell 89,000 shares.
U-Store-It Trust debuting Friday
U-Store-It Trust's (YSI: news, chart, profile) initial public offering of 25 million shares closed at $16.73, ahead of the $16 price.
The IPO priced below the estimated price range of $17-$19 a share.
The real-estate investment trust and owner of storage facilities around the country raised $400 million via underwriter Lehman Brothers.
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Google 7th IPO of the year to double
Google doubles after 60 days
IPO reaches triple-digit gains after earnings boost
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 1:43 PM ET Oct. 23, 2004
NEW YORK (CBS.MW) -- As Google Inc.'s stock price approaches $200 per share, the company continues to set new milestones in the market for initial public offerings.
With revenue and cash flow targets exceeding estimates, Google turned in a quarter of online advertising gains, sending the share price up 15 percent on Friday to close at $172.43, more than double its $85 IPO price. See full story.
Including its latest sprint upward to new highs, Google (GOOG: news, chart, profile) has created about $24 billion in value since it started trading on Aug. 19, with its market cap swelling to $47.5 billion from $23 billion.
Google has pulled up beside Yahoo (YHOO: news, chart, profile) for the first time, with its market cap now about flat with its older rival's $47.75 billion market cap as of Friday.
"What does Google do up in this range of rarified air?" asked David Menlow of IPOfinancial.com. "It's hard to look at this stock and apply traditional fundamental metrics. Clearly it has blown through every model that exists."
Menlow lamented that Google has declined to provide analysts with any profit targets moving forward -- a precedent the company set during its IPO road show over the summer.
But the results in its first earnings report after going public in August have been impressive to Wall Street thus far.
Mark Mahaney, analyst for American Technology Research, said Google's Internet search advertising "is showing explosive growth" as he raised his rating on the stock to "hold" from "sell."
Some remain puzzled by Google, which went public in a controversial Dutch auction IPO that set the price based on bids from individual investors. See full story.
Google's relatively high $85 IPO price -- in contrast to the typical IPO level of $10-$20 for other companies -- led some to believe that the stock would go down once it traded, noted Richard Peterson of Thomson Financial.
Unlike dot-com darlings from the Nasdaq bubble years, Google took 60 days to double, instead of a day or two.
Google also waited until its revenue crossed the $1 billion mark, with net income as far as the eye could see, before it went public, unlike the more speculative deals of the past.
Still, with its stock price shooting upward, Google is carrying a lofty valuation on par with Yahoo.
Google 7th IPO of the year to double
Google ranks as one of seven IPOs from this year to see their share prices double in year-to-date gains, but all the others were much tinier deals:
Jed Oil (JDO: news, chart, profile), Crosstex Energy (XTXI: news, chart, profile), Marchex (MCHX: news, chart, profile), Rightnow Technologies, (RNOW: news, chart, profile), Shanda (SNDA: news, chart, profile) and 51Job (JOBS: news, chart, profile) all have doubled.
Google dwarfed these deals in terms of its revenue and net income, but like many IPOs this year, it was forced to cut its price ahead of its debut.
A few days before it went public, Google drastically trimmed its price range to $85-$95 per share, down from $108-$135.
With IPO proceeds of $1.7 billion, Google ranks as the third-richest U.S.-based IPO so far this year behind Genworth (GNW: news, chart, profile) and Assurant (AIZ: news, chart, profile).
Both the insurance firms have seen muted gains compared with Google's gallop upward.
Google still marks the IPO with the biggest name recognition this year.
In coming days, an IPO from DreamWorks Animation promises to be one of the more high profile IPOs of the fall season.
While DreamWorks (DWA: news, chart, profile) isn't as well-known as Google, its film titles include "Shrek" and a blockbuster sequel, plus the more recent hit "Shark Tale." The all-star cast of shareholders includes film mogul Steven Spielberg and Microsoft co-founder Paul Allen. See full story.
IPO reaches triple-digit gains after earnings boost
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 1:43 PM ET Oct. 23, 2004
NEW YORK (CBS.MW) -- As Google Inc.'s stock price approaches $200 per share, the company continues to set new milestones in the market for initial public offerings.
With revenue and cash flow targets exceeding estimates, Google turned in a quarter of online advertising gains, sending the share price up 15 percent on Friday to close at $172.43, more than double its $85 IPO price. See full story.
Including its latest sprint upward to new highs, Google (GOOG: news, chart, profile) has created about $24 billion in value since it started trading on Aug. 19, with its market cap swelling to $47.5 billion from $23 billion.
Google has pulled up beside Yahoo (YHOO: news, chart, profile) for the first time, with its market cap now about flat with its older rival's $47.75 billion market cap as of Friday.
"What does Google do up in this range of rarified air?" asked David Menlow of IPOfinancial.com. "It's hard to look at this stock and apply traditional fundamental metrics. Clearly it has blown through every model that exists."
Menlow lamented that Google has declined to provide analysts with any profit targets moving forward -- a precedent the company set during its IPO road show over the summer.
But the results in its first earnings report after going public in August have been impressive to Wall Street thus far.
Mark Mahaney, analyst for American Technology Research, said Google's Internet search advertising "is showing explosive growth" as he raised his rating on the stock to "hold" from "sell."
Some remain puzzled by Google, which went public in a controversial Dutch auction IPO that set the price based on bids from individual investors. See full story.
Google's relatively high $85 IPO price -- in contrast to the typical IPO level of $10-$20 for other companies -- led some to believe that the stock would go down once it traded, noted Richard Peterson of Thomson Financial.
Unlike dot-com darlings from the Nasdaq bubble years, Google took 60 days to double, instead of a day or two.
Google also waited until its revenue crossed the $1 billion mark, with net income as far as the eye could see, before it went public, unlike the more speculative deals of the past.
Still, with its stock price shooting upward, Google is carrying a lofty valuation on par with Yahoo.
Google 7th IPO of the year to double
Google ranks as one of seven IPOs from this year to see their share prices double in year-to-date gains, but all the others were much tinier deals:
Jed Oil (JDO: news, chart, profile), Crosstex Energy (XTXI: news, chart, profile), Marchex (MCHX: news, chart, profile), Rightnow Technologies, (RNOW: news, chart, profile), Shanda (SNDA: news, chart, profile) and 51Job (JOBS: news, chart, profile) all have doubled.
Google dwarfed these deals in terms of its revenue and net income, but like many IPOs this year, it was forced to cut its price ahead of its debut.
A few days before it went public, Google drastically trimmed its price range to $85-$95 per share, down from $108-$135.
With IPO proceeds of $1.7 billion, Google ranks as the third-richest U.S.-based IPO so far this year behind Genworth (GNW: news, chart, profile) and Assurant (AIZ: news, chart, profile).
Both the insurance firms have seen muted gains compared with Google's gallop upward.
Google still marks the IPO with the biggest name recognition this year.
In coming days, an IPO from DreamWorks Animation promises to be one of the more high profile IPOs of the fall season.
While DreamWorks (DWA: news, chart, profile) isn't as well-known as Google, its film titles include "Shrek" and a blockbuster sequel, plus the more recent hit "Shark Tale." The all-star cast of shareholders includes film mogul Steven Spielberg and Microsoft co-founder Paul Allen. See full story.
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