It became obvious: the IPO market is gradually getting to be one of the hottest places for a business to emerge in. Or at least that’s the impression the latest IPOs have left and Millennial Media’s seems to abide by that trend. The company’s IPO has managed to double gain in the first day of trading.
It’s been a long time since we got to see investors so eager to invest their money or for that matter stock markets so confident. It seems that the recovering economy has actually started to bring in revenue rather than just enough to cover costs prompting investors to start spinning money once again.
This time, Millennial Media is the company that’s getting the investors’ focus. The mobile ad network has had such a roaming success starting its first day of IPO trading that analysts have ruled it to be the most successful in terms of gain since the debut of LinkedIn.
Mobile services seemed to be the right dish to serve investors eager to get back in the market and Millennial Media has gained a lot, as its shares have almost doubled in its first day of trading. Yesterday was Millennial Media first day in trading and its shares went up by 92 percent to $25, with 10.2 million shares sold at half this price on March 28th.
Eric Jackson with Ironfire Capital LLC told Business Week: “When people see a mobile advertising company is being received so well, it makes people more excited about the Facebook IPO”. And other companies might get to benefit from the trend as analysts point out to Spotify LTD., Square Inc., Foursquare Labs Inc, Dropbox Inc. and Flipboard Inc.
Investors got the taste of IPOs and everybody is eager for Facebook’s IPO to start which is bound to have an overwhelming success. Meanwhile, as the IPO market regains confidence, the Congress has already announced measures to help companies raise capital easier. In the end, even if there’s still some concern that the IPO market’s success is only temporary, there’s a willingness to invest money we haven’t seen for quite some years. Bottom line, it’s a nice change of pace.