Demand Media IPO Opens Up Big On First Offering [Freelance Writing Site Makes Cash On IPO Despite Less Than Great Previous Earnings]

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With all the internet commerce sites launching stock options and IPOs in the coming years, one has to wonder whether we are witnessing a second dotcom boom. Demand Media, a freelance writing site launched an IPO yesterday and the company’s stock rose 35 percent from its opening.

Even the opening itself was higher than it was initially expected to be considering that the company has yet to actually show a real profit. Of course one of the reasons the IPO was so successful is that Goldman Sachs is the initial underwriter. Demand Studios has actually been much maligned as the content farm that it is because of the fact that they have hired thousands of writers to produce mediocre writing at an incredibly fast pace.

That was such a concern with the company that their less than stellar reputation was actually mentioned in the IPO papers but it doesn’t seem to have hampered investors.

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