Zillow, Skullcandy rise on first day
Shares of the real-estate website roar out of the gate. Stock in the headphone company is not as hot.
By Joe Deaux, TheStreet
Zillow's shares closed at $35.77, up 78.9%, while Skullcandy shares were up 1.6% at $20.32.
Skullcandy reached a high of $23.40 but slowly crept down during the noon hour. Zillow opened at $20 a share, leaped to $60 in the opening minutes, then quickly fell after buyers of the initial price offer sold off at a 200% profit.
Zillow's opening was among a number of summer tech IPOs that waltzed onto Wall Street amid a great deal of pomp. LinkedIn (LNKD), the professional social-networking site, opened on May 19 at $45 and rocketed to about $123 on its first day. Pandora (P) wasn't as fortunate. The Internet radio-streaming service opened at $20, but by its second day of trading, the shares had plummeted to $13.26.
Seattle-based Zillow, the third most popular real estate Web site in the U.S., raised $69.2 million by selling 3.46 million shares to the public. The shares were priced at $12 to $14 a share, then moved up to $16 to $18 before settling at $20 on Tuesday.
Zillow's earnings come from real estate and mortgage professionals as well as advertising. The company sells subscriptions to agents and has recently begun an agent review and rating tool. Zillow is also recognizing revenue from its strategic partnership with Yahoo!'s (YHOO) real estate web site. Zillow provides the real estate listings for the Yahoo site and expects to see increases in marketplace revenues as a result of the partnership.
Revenue might grow from increases in website traffic, which has risen sharply since the company's launch in 2008. For the past three Decembers, monthly unique views have increased 48% in 2008, 38% in 2009 and 66% in 2010.
Skullcandy, based in Park City, Utah, raised $188 million through the offering after increasing the number of shares it issued. The company originally expected to reap $150 million by pricing shares at $17 to $19. However, the shares hit the market at $23. The company also increased the size of the sale to 9.4 million shares from the original plan to sell 8.4 million.
Zillow is a TERRIBLE website to look for houses. They show my house for sale on there! I bought it over a month ago. When I bought the house, surprisingly Zillow actually showed what I bought it for and showed it was obtained from a public record. They actually did that right. BUT of course, not even a few days later, it showed it listed for sale (not even at the price it really was listed for originally) and has the short-sale pics on there (when I was looking at purchasing it, they at least had the foreclosure pics). Anyways, I tried contacting Zillow to tell them to take it off, but too bad for me, I have to contact the real estate agent who they say listed it for sale. GUESS WHAT? I contact him, and he says it is Zillow's fault, that he doesn't even know anything about the property.
MY FINAL POINT IS.... ask for listings from your REALTOR, not this dumb out-dated and backwards totally wrong website. IT WOULD be a great website, IF and only IF they actually had up-to-date and correct information.
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