Shares of Palm, Inc. (Nasdaq: PALM) tripled in their first day of trading yesterday, rising 57 1/16 to 95 1/16. The shares traded as high as 165 at one point. Palm, which had been the best performing division of 3Com Corp. (Nasdaq: COMS), was boosted by a “buy” recommendation from ABN Amro analyst Jonathan Ross, who said the stock could reach $90 in six months — a level it broke in its first day.
3Com shares, meanwhile, retreated, falling 22 5/16 to 82 13/16. If Palm shares rise too high and 3Com shares fall too low, “that would imply that the rest of 3Com is worth absolutely nothing,” and that’s not true, Ross said Thursday. 3Com shares had soared to record levels ahead of the Palm IPO.