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Wall Street Beat: HP, Lenovo disappoint but IPOs rock

21.05.2009
Successful initial public offerings this week from network management company SolarWinds and Web-based restaurant reservation company OpenTable were offset by disappointing results from Hewlett-Packard and Lenovo, which said they face a tough sales climate for the rest of the year.

SolarWinds had a successful IPO on the New York Stock exchange Wednesday. The IPO priced at $12.50 a share, above the expected range of $9.50 to $11.50 a share, raising $151.5 million in gross proceeds.

On Thursday, OpenTable launched its IPO on the Nasdaq. The stock was originally set to price between $12 and $14, and then was pushed to a $16 to $18 price range. However, it opened at $24.50 and closed at $31.89.

The other stocks this year with IPOs that ended up pricing higher than expectations were also tech-related: geospatial information purveyor DigitalGlobe and language software maker Rosetta Stone.

Over the past two months, tech stocks have bounced back from their yearly low on March 8, when the tech-heavy Nasdaq hit 1268.64, its lowest close in about nine years.

But despite the successful IPOs this week, stocks have been volatile lately, as the latest unemployment numbers and a credit warning on the U.K. had investors concerned that the economic recovery won't be as quick as previously thought. The Nasdaq fell 46 points to 1681 Thursday.