Just being mobile is no sure bet that the company will perform. Shares of NetQin Mobile (NQ) closed Wednesday at $6.07, down 47% from its initial pricing at $11.50.
There was lots of investor interest in this company, which is headquartered in Beijing and provides mobile security software and services in China, and the IPO priced at the high end of its range but the stock immediately dropped 27% on its first day.
The problem now is that three major telecom operators have stopped offering NQ's applications in their app stores, citing concerns about fraud. Nokia (NOK) had supposedly dumped them as well, but then the company issued a press release saying that Nokia was in fact carrying the app. The controversy isn't helping this new company.
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