This Day On The Street
Continue to site
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

3 Big 2011 Tech IPOs: Where Are They Now?

NEW YORK ( TheStreet) -- Last month marked the one-year anniversary of Facebook's (FB) initial public offering, an event that was billed as larger than life.

Everyone wanted a piece of the action. But investors eventually learned the hard way that over-subscribing to an idea means nothing if it can't manifest itself into results.

I'm not going to absolve Facebook of the fiasco that surrounded its IPO. But there's not much a company can do when the market falls in love with its stock. The hysteria reminded me of the chaos created in the late 1990s when, out of nowhere, lousy companies pitched their tents on the Nasdaq at breathtaking valuations. All they needed was a Web site and a patent.

It's true that some nimble traders did well. But investors forget the IPO frenzy also caused a lot of damage.

Over the past several years, the IPO market has been, at best, hit or miss. The market's love affair with Facebook's IPO was just one recent example of how investors remain thirsty for instant gratification. While it's still too early to say definitively how Facebook will be looked upon down the road, the picture is much more clear for other recent IPOs.

We're going to look at three companies that hit the social scene a couple of years ago with equal amounts of fanfare only to have investors realize that, as in any IPO, there are no guarantees of long-run success as a company or a stock.

Sad Songs for Pandora

Pandora (P - Get Report), which is the market leader in Internet radio streaming with more than 7% share of total radio listening, has been playing plenty of sad tunes lately. The company first went public on June 15, 2011. The stock opened at $20 per share and soared to its all-time high at $26 until it ended its first public session at $17.35.

After its IPO, questions were raised regarding profitability. But why now? The company had not earned a profit in the 10 years prior to going public. It's as if the company's prospectus didn't matter and Pandora's business model was expected to suddenly change.

But Pandora surprised the Street in the third quarter of 2011 with its first-ever profit -- earning $638,000. It wasn't a huge number. But for Pandora, it got the doubters off its back.
1 of 4

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GRPN $3.62 0.00%
LNKD $125.31 0.00%
P $9.93 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs