View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
May 5, 1997updated 05 Sep 2016 12:43pm

BANKERS WARN OF POOR RETURN FOR INTERNET INVESTORS

By CBR Staff Writer

Internet companies are not providing the financial returns longterm investors are looking for, according to specialist information technology investment bankers Broadview Associates Inc. Of 25 recent initial public offerings of internet related companies, 21 are trading at a share value below their original launch price. Their figures give an average depreciation of 34% over all 25 companies analysed. During 1996 the Nasdaq index overall gained 25%, and for the rest of 1997 has remained flat, showing that the Internet-related public offerings have fared significantly worse than the rest of the market. Victor Basta, a Broadview managing director, said: Many Internet firms do not yet have enough product or service differentiation to rise above the general noise of the marketplace. The most successful companies have been Yahoo! Inc (+113%), Netscape Communications Corp (+79%), and firewall specialist Checkpoint Software Technologies Ltd (+36%) all of which have risen from product development to occupying defined niches in their markets. Spyglass Inc, on the other hand, which made a big splash in the market at the end of 1995, has since lost 61% of its value, having failed to capitalize on its enhanced Mosaic-based Web technology despite winning Microsoft Corp as one of its customers.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU