On May 11, online financial news site TheStreet.com was the darling of Wall Street when shares of its initial public offering gained 41 points to close at 61 on their first day of trading. The luster has quickly gone away. TheStreet.com has been one of the hardest-hit stocks in the hard-hit Internet sector since then, and the company is now worth less than half of what it was worth on IPO day.
TheStreet.com fell 2-7/8 to 30-1/4 on Wednesday and now has a market capitalization of about $714 million. Meanwhile, competitor CBS Marketwatch (Nasdaq: MKTW) has also seen its stock price fall recently, but shares of Marketwatch, which closed down 5/8 to 52-1/4, have held relatively strong, compared to TheStreet.com. Marketwatch has a market capitalization of $635.5 million.
On May 11, the notion of these companies being valued within $80 million of each other would have seemed ludicrous. Things have changed in a hurry.