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PayPal Bounces Up
from the amazing dept
So, PayPal started trading today and the stock shot up. This is actually quite impressive, and I imagine that it means a few remaining tech companies not completely on life support may suddenly try to rebuild interest in their IPOs. Top of that list is probably Google.
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Does this mean that the IPO market, and by extension, the economy, is on its way back?
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harumph
So one whole trading day is enough to reinvigorate the dot-com IPO market? The day's trading volume was higher than the size of the offering, so everybody in on it has probably flipped it already.
Since the fall from the lofty heights of the boom days, there has been the occasional mildly successful IPO that has been interpreted as a sign that there's still a demand for good new companies. Every time I hear that, I add it to the 'ipo frenzy' list of symbols on my yahoo page. That list includes such companies as Transmeta and Loudcloud, both of which are trading at about $3.50 today, well below their offering prices. I expect to see PayPal in that range before too long.
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Re: harumph
I agree, that I expect PayPal to fall pretty quickly, but I was surprised at the pop it got. I don't remember Transmeta, but Loudcloud started out down.
The pop may well convince i-bankers to try to take a few others public.
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Re: harumph
Loudcloud was an exercise in spin-doctoring to call it a positive IPO. I think they lowered the offering price a few times before it finally happened, then it may have squeaked out only a marginal gain, but it's down from even that mediocre start. I'm vaguely recall that, at the time, people were calling it a modest success, given the unfavorable market conditions at the time. (Maybe unfavorable compared to 1999. Really unfavorable conditions will be when the investment bankers lose their shirts on a dog of an IPO.)
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