Zillow IPO a Smash Hit, Overshadows Skullcandy Debut
Yesterday two relatively exciting companies hit the markets in their public debuts on the Nasdaq (NASDAQ:NDAQ), real-estate information company Zillow (NASDAQ:Z) and headphone maker Skullcandy (NASDAQ:SKUL). Both stocks were expected to meet fairly positive IPO receptions, but at the end of the day it was Zillow which stole the show, jumping up nearly 200% in the minutes following its opening, then eventually settling up 81% to $36.14 by closing time. Skullcandy (NASDAQ:SKUL), which received much less attention in the weeks leading up to its debut, moved with much less volatility in its first day of trading yesterday, ending at the opening price of $20 after rising up to $23 earlier in the day.
Zillow’s success makes it the latest web 2.0 company to flourish in its public offering this year, following the success of social media leader LinkedIn (NYSE:LNKD), search engine Yandex (NASDAQ:YNDX), and internet radio leader Pandora Radio (NYSE:P). Despite the plethora of demand for shares of Zillow, the third most popular real estate website on the internet, the company is lacking in fundamental financials. It has yet to turn a profit.
Skullcandy raised $200 million through sale of shares in its IPO yesterday, after the company increased the volume of its offering and shares debuted at several dollars above the company’s IPO price range. The “fashionable” headphone maker sells its gear through retailers such as Target (NYSE:TGT) and Best Buy (NYSE:BBY).