The stock of business-to-business e-commerce solutions company Commerce One (Nasdaq: CMRC) continued its torrid run on Thursday, gaining 14 to 324 after the company announced a 3-for-1 stock split. After Thursday’s climb, Commerce One stock is more than 1,400 percent higher than its July initial public offering price. In addition, the company has a whopping market value of nearly $8 billion. That is not a bad figure for a company that had revenue of $10.4 million and also a net loss of $10.4 million in the third quarter.
Even at the stock’s hard-to-believe current level, investors are bullish about Commerce One. Its revenue grew 15-fold in the third quarter of 1999, compared to the same quarter in 1998. Perhaps even more significant is the company’s alliance with General Motors to create a business-to-business marketplace.
In addition, as James Cramer of TheStreet.com pointed out on Thursday, stocks like Commerce One are climbing partially because there is only a limited amount of shares available for trading, which means that demand might actually surpass supply. Commerce One currently has a float of 3.3 million shares.