This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Data Domain Outpaces IPO

Investors eagerly bought shares of electronic data backup company Data Domain (DDUP) on Wednesday, its first day of trading as a publicly listed company.

Data Domain's shares were recently trading up $8.05, or 54%, to $23.05 after its successful initial public offering Tuesday. Its shares priced at $15 in the IPO, above the estimated range of $11.50 to $13.50.

"Data Domain far exceeded expectations," said Sal Morreale, IPO tracker at Cantor Fitzgerald. Indications looked strong on Friday with investor orders for shares running at four times the 7.4 million shares planned for the IPO, said Morreale. By Wednesday, demand had reached 12 times the planned offering.

Six-year-old Data Domain develops hardware to make electronic data more efficient by avoiding duplication. The disk-based devices help companies and government agencies back up and store data as part of disaster-recovery plans.

Disk-based storage has become more affordable as disk prices have fallen over the past five years and have become more competitive with tape-based storage. Companies typically prefer to use electronic storage on disks, because they are much easier and quicker to search than are tapes.

Most of Data Domain's customers are small and medium-size businesses for which disk-based data backup has become more affordable. But the company is making headway with larger clients that need to back up information received from multiple remote locations and store it in large data centers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EMC $26.50 0.00%
NTAP $36.12 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs