Feeds

Dotcom IPOs master the universe

Frothy stocks lose steam

  • alert
  • submit to reddit

The essential guide to IT transformation

Dotcom IPOs in the US yielded a massive $702bn in equity value last year - more than half of the sector's total market capitalisation. Last year, web-related IPOs generated 53 per cent of the web sector's combined stock market value of $1.32 trillion, according to a study by researchers Paul Kagan Associates. On average, 1999 web IPOs gained 253 per cent in value.

Of the 309 net offerings 15 returned more than 1,000 per cent. The highest performer, Commerce One, rose by 2,899 per cent. According to Kagan, the worst performer for the year was Value America, down 74 per cent from its April 8, 1999, offering price.

Kagan Analyst and senior VP Larry Gerbrandt said: "As a wealth and value creator, there has probably been no industry or technology which has achieved so much in such a short period of time as the Internet and the web.

"Since America Online went public in 1992, we've tracked 409 Web-related initial public offerings worth a collective $222bn at their respective offering prices. "At the end of 1999, this same group - including the companies they have subsequently acquired and merged with -- had a combined stock market equity capitalisation of $1.32 trillion, an average increase of 497 per cent."

Yesterday, technology-dominant stock market NASDAQ fell 5.6 per cent in new year trading. Terence Lim, head of research at Merrill Lynch, is quoted as saying that "frothy telecommunications and Internet-related stocks are losing steam". ®

5 things you didn’t know about cloud backup

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?