Suzanne wrote:
>
> An interesting story since we used to do a lot of work for GeoCities before
> our art director friend bailed for a less insane job. I noticed just the
> other day that GeoCities stock was up something like 20 points and it was
> being touted as a hot new Internet stock. If anyone on WC follows the stock
> exchange, I'd be curious to know how the news impacted the stock price.
Started at $17 on IPO Tuesday.
Closed at $34 that day.
Was at $45 Thursday morning when the news hit.
Closed at $40.25 or so.
The thing that amazes me is that it didn't go lower. If you think about
it, Geocities already has no real income. And it would appear they
didn't get what money they do have entirely from ads . . .
So if one assumes a chunk of the income they do have, and are
outrageously overvalued on (I mean, really now, would anyone on this
list, even in their wildest dreams, put a $1.1 billion price tag on what
GeoCities has?), came from selling this data, and that said income is
now gone, their valuation should have taken a much bigger hit. Given
also the fact that their new business is gonna shrivel for awhile, and
that people currently there will be leaving due to this, and we have a
stock held by 2 million people who know nothing and are apparently
desperate to get any Internet IPO action :P
Maybe this will be the first major IPO that burns enough investors in
the end to chill the fever a bit.
On the other hand, Amazon and Yahoo keep going up and up and up . . .
Also makes me wonder if the decision to sell data came from the need for
cash to survive through IPO. Personal data is a hell of a lot more
valuable on today's market than ad revenues . . . wonder how many other
borderline profitable operations are taking the same route behind the
scenes?
B
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