Thursday’s IPO by satellite image maker DigitalGlobe was the fifth in row to surge in its first day of trading, rising 13 percent in another sign of the IPO market turning around. But a first day pop does not necessarily guarantee long-term success.
Just take a look at the other IPOs this year, with their respective first day pops:
- Mead Johnson, 10 percent (Feb. 11) (pediatrics nutrition)
- Changyou.com, 25 percent (April 2) (online video games)
- Bridgepoint Education Inc, 5.7 percent (April 15) (online college operator)
- Rosetta Stone, 40 percent (April 16) (language training software)
Bridgepoint is now trading below its offer price of $10.50, which was below the estimate range in the first place.
Rosetta Stone, which wowed the markets last month with the best first day performance in a year, forecast a loss earlier this week and its shares are now 31.5 percent down from their all-time high hit last week.