What will Demand Media stock be at six months following their IPO date? That is a very important question that many employees and early investors are asking. That date is when they have their first opportunity to sell their shares.
In the past, many technology employees have become overnight millionaires once their firm went public but had worthless paper once they were able to sell their shares. Of course you have companies such as Google and Apple, where many employees did very well when their time came.
Let’s get back to Demand Media. The stock was one of the first high flying tech firms to go out this year. I can tell you that they threw an incredible party at Domainfest celebrating their IPO. Whats not to celebrate. They priced at $17 per share and hit a high over $27. Unfortunately what goes up, must come down. When Google made changes to their algorithm, some Demand sites suffered large traffic decreases. It must have put a scare into investors as the stock has been trading down each day. Today it hit an all time low of 13.99 during the trading day.
What will it be in 3 more months. My personal guess is under $10, which is a lot higher than I think it will be in 1-2 years.