The hottest internet IPOs of 2011. Who went big and who went home.

Feb 21

The hottest internet IPOs of 2011. Who went big and who went home.

Over 24 Internet companies launched IPOs last year in the US alone according to Renaissance Capital. 2011 included four of the five largest US Internet IPOs ever – Bankrate, Groupon, LinkedIn and Zynga – raising $2.4 billion.

However if you bought Internet or social-media IPO stocks in the past couple of years, you have probably lost money. According to Birinyi analyst Kevin Pleines, 18 of the 30 stocks are below their IPO price and 24 of the 30 are below their opening price on their first day of trading.

The slump has been attributed to slow growth in the U.S. economy and sovereign debt in countries including Greece and Italy. The economic concerns caused market volatility that made pricing IPOs difficult.

Internet IPOs from 2011 performing include Angie’s List, Bankrate, Cornerstone onDemand, LinkedIn and Zillow. OnDemand Media, Groupon, and Pandora are all well below IPO prices. The large China IPOs RenRen and Tudou are well listed prices as well.

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Company Symbol Offer price Current price * Change %
21Vianet Group VNET 15.00 9.15 -39.00
Angie’s List ANGI 13.00 16.10 23.85
Bankrate, Inc. RATE 15.00 21.50 43.33
Carbonite CARB 10.00 11.10 11.00
Cornerstone OnDemand CSOD 13.00 18.24 40.31
Demand Media DMD 17.00 6.65 -60.88
FriendFinder Networks FFN 10.00 0.75 -92.50
Groupon GRPN 20.00 20.63 3.15
LinkedIn LNKD 45.00 63.01 40.02
Pandora Media P 16.00 10.01 -37.44
Renren Inc. RENN 14.00 3.55 -74.64
Responsys MKTG 12.00 8.89 -25.92
Solazyme SZYM 18.00 11.90 -33.89
Tudou Holdings Ltd. TUDO 29.00 10.98 -62.14
Zillow, Inc. Z 20.00 22.48 12.40
Zipcar ZIP 18.00 13.42 -25.44
Zynga ZNGA 10.00 9.41 -5.90


Source: FactSet Research Systems; WSJ Market Data Group
* Prices as of 19 February 2012.

Angie’s List

Contractor and healthcare provider review site Angie’s List waited 16 years before going public on November 17th. The IPO price was $13 and it rose to over $18 on the first day of trading. It closed at $16.42 on December 14th but had dipped below the IPO price early in the month. The company is not profitable.

Bankrate

Bankrate (RATE) has a long track record of operation since its founding 35 years ago. The company collects bank interest rates data and information on 300 other financial products from 4,800 banks and distributes to several newspapers and online publications.

Bankrate Inc.’s initial public offering drew a weak response on the first day of trading as investors worry of high debt, past governance issues and lofty valuation.

Cornerstone OnDemand

The on-demand talent management company (US:CSOD) jumped 46.7% to close at $19.07 as its initial public offering. Cornerstone offers software-as-service that allows businesses to train employees and track their performance of their employees.

LinkedIn

This business-to-business social networking company went public on May 19th at $45 a share. On the first day, the stock rose to almost $110. At the time LinkedIn’s underwriters — Bank of America, Merrill Lynch and Morgan Stanley — were criticized for setting the price so low. Analysts suggested LinkedIn should have been priced at $90 a share.

However, LinkedIn is one of the few Internet companies that has never dipped below its initial offer and closed at $65.95 on December 14th, so perhaps the underwriters were correct in their conservative pricing. LinkedIn states that it has been profitable since 2006.

Zillow

This company provides real estate market information for consumers and real estate professionals. It was listed on July 20th when it was priced at $20 and went as high as $44. For most of September it ranged between $35 and $37.50 but closed at $22.13 on December 14th. Zillow became profitable in its first quarter as a public company.

2011 IPO Infographic

Singlegrain decided to condense the biggest tech IPOs of 2011 into a single infographic. It provides an overview of how each of these technology giants turned into billion-dollar Wall Street darlings.

2011 IPO inforgraphic

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