After beginning the month like a lion, the Internet IPO market exited March like a bear.
The 27 new Net stocks posted an average first-day gain of 99 percent, making March the first month since last September to average below triple-digits.
The difference between the early and latter parts of the month was dramatic in terms of first-day performance for new Net tickers. Eight of the 14 Internet IPOs launched through March 15 more than doubled in price in their debuts, while only two of the 13 from the second half of the month reached triple-digits.
Moreover, the average gain for the first group was 151 percent, while the latter group – which featured four companies that fell below their respective offer prices – was only 42 percent.
The nosedive taken by Internet stocks in the latter half of the month clearly dragged the IPO market down with it. But the market also has seen a record number of Internet IPOs for the first quarter. The 59 Net ticker debuts through March are more than twice the number from last year’s Q1.
Sounds like a glut, but demand for Internet stocks continues to outstrip supply, which is why so many companies with scant operating histories and no profit have been propped up by market dynamics and, to be honest, irrational exuberance.
However, the sobering market events of the past two weeks or so seem to have forced investors to finally buckle down and view new Internet offerings with a clear, critical eye. This should last until the next Net stocks run-up.
Here’s how things looks so far compared to last year:
| Month | This year | 1999 |
|---|---|---|
| January | 5 | 4 |
| February | 27 | 11 |
| March | 27 | 13 |
| Total | 59 | 28 |
Average First-Day Return (By Month)
| Month | This Year | 1999 |
|---|---|---|
| January | 160% | 241% |
| February | 126% | 122% |
| March | 99% | 134% |
10 Best Internet Debuts of 2000
| Company | IPO Date | Gain |
|---|---|---|
| webMethods | Feb. 11 | 508% |
| Crayfish | March 8 | 414% |
| Selectica | March 10 | 371% |
| FirePond | Feb. 4 | 356% |
| Neoforma.com | Jan. 24 | 303% |
| Extensity | Jan. 27 | 256% |
| ArrowPoint | March 31 | 248% |
| GigaMedia | Feb. 17 | 226% |
| net.Genesis | Feb. 29 | 216% |
| eMerge Interactive | Feb. 4 | 215% |
10 Worst Internet Debuts of 2000
| Company | IPO Date | Gain/Loss |
|---|
| ARTISTdirect | March 28 | -22% |
|---|---|---|
| PartsBase.com | March 22 | -12% |
| ImproveNet | March 16 | -12% |
| Hanaro Telecom | March 29 | -9% |
| VarsityBooks.com | Feb. 15 | -1% |
| SAVVIS Communications | Feb. 15 | 0% |
| Pets.com | Feb. 11 | 0% |
| b2bstores.com | Feb. 15 | 2% |
| Etinuum | March 24 | 3% |
| eSafetyWorld | Feb. 18 | 6% |
Here are the March Interne
t IPOs, listed by date, with their first-day performances:
- March 1 Onvia.com(ONVI),
193% - March 1 MatrixOne(MONE),
195% - March 2 Switchboard(SWBD),
79% - March 3 Versata(VATA),
57% - March 3 Register.com(RCOM),
139% - March 3 Prime Response(PRME),
33% - March 8 Crayfish(CRFH),
414% - March 8 iPrint.com(IPRT),
58% - March 10 Selectica(SLTC)371%
- March 10 OTG Software(OTGS),
196% - March 10 HomeGrocer.com(HOMG),
18% - March 14 FairMarket(FAIM),
185% - March 14 Digitas(DTAS),
23% - March 15 Loudeye Technologies(LOUD),
150% - March 16 ImproveNet(IMPV),
-12% - March 17 Netpliance(NPLI),
23% - March 17 Integrated Information Systems(IISX),
40% - March 21 Snowball.com(SNOW),
39% - March 22 PartsBase.com(PRTS),
-12% - March 24 Eprise(EPRS),
68% - March 24 Etinuum(ETIN),
3% - March 28 Websense(WBSN),
165% - March 28 ARTISTdirect(ARTD),
-22% - March 29 Telocity (TLCT),
10% - March 29 Hanaro Telecom(HANA),
-9% - March 31 ValueClick(VCLK),
10% - March 31 ArrowPoint Communications(ARPT),
248%
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