The online marketing/advertising sector is currently dominated by DoubleClick and Engage Technologies, but investors clearly think there is a lot of room for competition. Online marketing/advertising companies Net.Genesis (Nasdaq: NTGX) and Avenue A (Nasdaq: AVEA) both went public on Tuesday and racked up tremendous gains. Shares of Net.Genesis more than tripled, soaring 38-13/16 to 56-13/16, a gain of nearly 216 percent. Meanwhile, shares of Avenue A tripled, gaining 48 to 72.
Pre-IPO demand for both offerings was high. Net.Genesis priced 4.25 million shares at $18, above the revised range of $14 to $16 and well above the original range of $11 to $13. Avenue A priced 5.25 million shares at $24, above the revised range of $18 to $20 and triple the low end of its original range of $8 to $10. Privacy issues or no privacy issues, investors are clearly betting that online advertising will remain a red-hot sector.