The Internet initial public offering market has become extremely unpredictable this week, with high-profile IPOs like 1800Flowers.com(Nasdaq: FLSW) surpisingly falling on their first day of trading. Considering all the uncertainty surrounding even well-known IPOs these days, the executives at online real-estate network HomeStore.com (Nasdaq: HOMS) have to be pleased with how their offering was received on Thursday.
HomeStore.com, which had revenue of $21.4 million and a loss of $50 million in the first half of the year, priced its IPO at $20, twice as much as the high end of its original price range of $8 to $10. The IPO climbed as high as 27-1/4, before closing at 22-3/4, a gain of 13.75 percent.
This week at least, this kind of first-day performance is extremely respectable.