Five months ago, Demand Media went public at $17 per share. Within a short time, the stock hit a high above $28 per share. It seemed like they hit the market at the perfect time. Internet stocks had once again become the favorites of Wall Street.
Flash forward to today, almost 6 months after that opening bell, Demand’s stock has tanked. It hit a low yesterday of 11 3/4. That means in a matter of a few months, the value of stock has gone down over ONE BILLION DOLLARS. Insiders, who have to wait 6 months after the IPO to sell their shares must be biting their nails as the value of their nest eggs continue to erode. My guess was that the stock would be around $10 at the six month mark. I guess in a few days we will all see what happens when additional shares are unloaded on the open market.