360° Coverage : The Demise Of The Hot IPO: FireEye And Rocket Fuel Collapse

2 Updates

The Demise Of The Hot IPO: FireEye And Rocket Fuel Collapse

May 8 2014, 6:02pm CDT | by

Less than eight months ago, two tech companies that were losing money listed their shares on Nasdaq on the same day and saw their shares explode higher. FireEye and Rocket Fuel ushered in the return...

Filed under: news

 
 
 

23 weeks ago

The Demise Of The Hot IPO: FireEye And Rocket Fuel Collapse

May 8 2014, 6:02pm CDT | by

Less than eight months ago, two tech companies that were losing money listed their shares on Nasdaq on the same day and saw their shares explode higher. FireEye and Rocket Fuel ushered in the return of the hot IPO, reminding some of the first Internet bubble.

This week history repeated itself as shares of FireEye and Rocket Fuel collapsed. Like in the first Internet bubble, shares of the companies plunged weeks after pre-IPO venture capital investors, founders and executives cashed-in.

Earlier this week FireEye, a seller of cybersecurity software, reported first-quarter financial results that were not enough to meet the very high expectations that had been built into the stock. Shares of FireEye fell by 22% on Wednesday.

FireEye CEO David DeWalt hopped on CNBC to apologize and confront questions over having personally sold $39 million of stock in March at a price of $79.54 per share. In that secondary offering, FireEye founder Ashar Aziz sold $83 million of stock and venture capital firm Northwest Venture Partners, a pre-IPO investor in the company, sold $160 million of FireEye shares. The stock slipped another 4% on Thursday to $27.45. The stock soared by 80% on IPO day and closed at $36.

Rocket Fuel, an advertising technology company, released its most recent financial results after the markets closed on Thursday and the outcome looks to be equally ugly. Shares of the company are getting hammered in after hours trading, plummeting by 25% to $20.69. Rocket Fuel raised some $116 million in its IPO by selling stock at $29 a share. It stock increased by 93% in its first day of trading, closing at $56.10.

Rocket Fuel conducted a secondary offering earlier this year by selling stock for $61 per share. Pre-IPO venture capital investors and other insiders received $175 million. About $100 million of that windfall went to venture capital firm Mohr Davidow Ventures. Rocket Fuel CEO George John also sold some $18 million of stock.

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a n ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH37 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Nigerian parliament approves $1 bn loan to fight Boko Haram
Lagos, Oct 23 (IANS) The Nigerian House of Representatives Wednesday approved President Goodluck Jonathan's request to borrow not more than one billion dollars to tackle the security challenges facing the country.
 
 
Kenya to train 30,000 health workers on Ebola
Nairobi, Oct 23 (IANS) Kenya has plans to train 30,000 health workers on Ebola screening, prevention, control and case management, the health ministry said Wednesday.
 
 
Germany pledges additional five mn euros to fight Ebola
Berlin, Oct 22 (IANS) Germany Wednesday said it would provide over five million euros ($6 million) in additional funds to promote Ebola research.
 
 
Indian-origin student named America's Top Young Scientist
Washington, Oct 22 (IANS) Sahil Doshi, a 14-year-old Indian-American student has won the 2014 Discovery Education 3M Young Scientist Challenge for his innovative, eco-friendly battery design that could help lower harmful greenhouse gases.
 
 
 

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
 
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
 
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
 
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
 
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
 
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
 
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
 
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
 
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
 
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla