Hungry investors snap up OpenTable
OpenTable was the special of the day on Wall Street on Thursday.
The restaurant-reservation company's stock soared on its first day of trading on Nasdaq, gaining nearly 60 percent to close at $31.89 after selling 3 million shares at $20 a share during its initial public offering Wednesday. Nearly 5 million shares changed hands, trading as high as $35.50.
OpenTable's stock performance is the biggest first-day gain for an IPO since energy-management systems firm Orion Energy Systems gained 65 percent in its debut in December 2007, according to IPO research firm Renaissance Capital.
OpenTable's revenue comes from monthly subscription fees charged to restaurants for access to the company's service, as well as a $1 fee paid by restaurants for each seated guest derived from reservations made on OpenTable's site.
The company earned 2 cents per share on nearly $16 million in revenue in the quarter ended March 31, 2009, and lost 10 cents per share on revenue of $13.2 million in 2008.
The San Francisco-based company says it has 10,000 restaurant customers around the world and has seated more 100 million diners since its inception in 1998.
Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven. 
on. And just what assets does this company posses that
justifies this price. If it went under tomorrow is there anything
that the shareholders could liquidate to even recoup a part
of their investment? $35.50 today, $355.00 the next and then
$.35 in a week. Same old pig, new coat of lipstick!
- by yanchineseguy May 26, 2009 2:48 PM PDT
- I recently booked a reservation using OpenTable. It also sent me reminders as well as a follow-up request for feedback on the restaurant. I'm not sure of the value-added to participating restaurants for this service, because I could have easily called the restaurant to make the reservation. I used it because I wanted to try it and see if it was any different than calling in a reservation. I guess this site enables me to book reservations even when the restaurant is closed, but it's not like making a reservation takes so much time that I don't have the time to make the call during the day.
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