Several analysts have questioned the long-term prospects of online retailer Buy.com (Nasdaq; BUYX), an all-everything superstore that sells many items below cost and attempts to make money through advertising. Still, Buy.com’s Tuesday initial public offering received a warm welcome on Wall Street. The stock gained 12-1/8 to 25-1/8 on its first day of trading, a rise of more than 93 percent.
Buy.com priced 14 million shares at $13, above the projected range of $10 to $12. While its long-term prospects are still unclear, Buy.com now commands an impressive market value of more than $3 billion.
In related news, Buy.com was down for part of Tuesday because of a hacker attack. Similar attacks have also brought down Yahoo!, Amazon.com and eBay this week. Investors seem to have shrugged off these problems, but it is certainly troublesome that the biggest sites on the Web are this vulnerable.