Skip to main content

NEW YORK (TheStreet) -- Two technology stocks launched into public trading Friday with substantial momentum, bucking the overall stock market declines and carrying on the generally positive momentum in 2014 technology IPOs.

Hortonworks, now trading under the ticker (HDP) - Get Hortonworks, Inc. Report on the Nasdaq, and New Relic, trading under  (NEWR) - Get New Relic, Inc. Report on the New York Stock Exchange, were up 46% and 43%, respectively, from their initial public offering prices in mid-day trading.

Hortonworks, a data-analysis services startup, offered its 6.25 million shares at $16 per share raising $100 million, which values the Palo Alto-based company at $665 million. Shares Friday traded at $22.14 at their lowest before rallying to a high of $24.35.

Hortonworks is trying to commercialize Hadoop, free software developed by Yahoo! (YHOO) , to store, analyze and manage significant amounts of data. It was Yahoo!'s effort to compete with Google (GOOGL) - Get Alphabet Inc. Class A Report  before Hortonworks was spun off by Yahoo! and Benchmark, a venture capital firm that also funded Twitter (TWTR) - Get Twitter, Inc. Report , Uber, Snapchat and Instagram. Yahoo has a roughly 19.6% stake in the company.

As of Sept. 30, Hortonworks reported $33.4 million in year-to-date revenue, which is about double what it reported a year prior. Net losses were $86.7 million, up 80% from $48.4 million the same period in 2013.

Scroll to Continue

TheStreet Recommends

Joint underwriters Goldman Sachs and Credit Suisse have a 30-day option to buy another 937,500 shares of Hortonworks common stock. 

Meanwhile, New Relic, a software analytics company, priced an initial offering of five million shares at $23 per share for a $115 million draw Friday. New Relic's shares opened at $30 before spiking to a high of $34.05. Based in San Francisco, New Relic, now with 70 partners worldwide, monitors Web and mobile applications in real time. Its platform allows developers access to more than 50 plug-ins from its partners like Amazon Web Services and CloudBees.

For fiscal years 2013 and 2014, which end in March, New Relics' revenue was $29.7 million and $63.2 million, respectively, according to its IPO filing. That's growth of about 113%.

Underwriters Morgan Stanley, JPMorgan Securities, Allen & Company and UBS Securities have a 30-day option to buy 750,000 more New Relic shares.

Technology IPOs have enjoyed strong IPOs throughout this year, with Alibaba (BABA) - Get Alibaba Group Holding Ltd. Report diving into the New York Stock Exchange with a record-breaking $25-billion IPO in September. Alibaba's stock is up 13% since its debut.

In other strong technology IPOs this week, LendingClub (LC) - Get LendingClub Corp Report , an alternative lending platform, skyrocketed more than 60% on its entry to the New York Stock Exchange Thursday. Originally priced at $15 per share, the stock opened near $25. Shares held up about 5% at $24.55 in Friday's session.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. At the time of publication, the author held no positions in any of the stocks mentioned.