Nasdaq Threatens To Delist Two More Internet Companies - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Nasdaq Threatens To Delist Two More Internet Companies

Whatever remnants of investor confidence in the Internet economy remain could be eroded by the ongoing parade of potential Nasdaq delistings. Two more Internet-focused companies received notice Thursday that they face delisting by Nasdaq because their stock has consistently traded for less than $1 over the past several weeks. Tickets.com and Burst.com both have requested hearings before a Nasdaq panel to fend off being relegated to over-the-counter status.

Randall Oliver, director of investor relations for online ticket-seller Tickets.com, says the company remains focused on achieving break-even status by the fourth quarter of this year through improved operating efficiencies and cost-cutting measures. Meanwhile, Richard Lang, chairman of streaming media firm Burst.com, says the company is eager to keep its Nasdaq listing. No wonder: The firm, an Internet elder founded in 1988 as Instant Video Technologies, was an over-the-counter issue for eight years until joining the Nasdaq exchange in October. "It was pretty unbelievable timing," says Lang. "In retrospect, I'm not sure the time, energy, and expense were worth it."

Some 65 companies were delisted by Nasdaq in January and February, and that number figures to rise substantially in April, when a number of companies could meet their fate:

--Online grocer and one-time Wall Street darling Webvan is scheduled to be delisted in April if its stock, which closed Thursday at 16 cents, doesn't show significant recovery soon;--Netpliance, a maker of Internet appliances currently trading at 41 cents, faces an April 17 deadline; --Former high-flying online community theglobe.com has been on notice since mid-February and is trading at just 19 cents; and --Drkoop.com Friday will attempt to convince the Nasdaq panel that it can boost its current stock price of 16 cents.

Artistdirect and Netzee also face delisting in the coming months and online apparel retailer Bluefly dodged delisting in February. It's a painful awakening for Internet companies, says Gartner Group analyst Rob Labatt. "If they're delisted, it means there's lowering faith in their businesses," Labatt says. He says many of the companies that have been or are about to be delisted may be paying for premature entry into the public markets. "When in history have companies gone public before logging three to five years of profitability? Never."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll