December 27, 1999 2:10 PM PST
Commerce One soars after 3-for-1 split
Walnut Creek, Calif.-based Commerce One surged 57.10 points to its closing price of 256.44, jumping 28.65 percent. The company saw its share advance as high as 271 today on volume of 8.3 million shares.
Commerce One, which makes business-to-business software that allows companies to buy and sell goods online, announced a 3-for-1 stock split last month, which became effective today to shareholders on record as of Dec. 3.
Rival Ariba also had a positive run, climbing nearly 13 percent. Shares of Ariba closed up 20.75 points at 182.75, setting an all-time high of 188 during the trading day.
Recently, a growing number of companies have been jumping into the business-to-business market space, focusing heavily on delivering online marketplaces or Net markets, especially for vertical industries. Business software makers Oracle and SAP have been making an aggressive play in the market, competing head-to-head with pure plays Commerce One and Ariba.
Forrester Research expects the business-to-business industry to expand to $1.52 trillion in 2003 from about $131 billion this year.
On the same day that Oracle partnered with Ford to set up AutoXchange, a marketplace linking Ford with its suppliers and partners online, Commerce One inked a deal with General Motors to create a similar site. Under the deal, GM said it will use Commerce One products to create GM MarketSite, a "virtual marketplace" for products, raw materials, parts and services.
Last quarter, Commerce One posted a loss of $10.4 million, or 45 cents a share. For the quarter, the company reported $10.4 million in revenues.
The company, which went public in July, tripled in its first day of trading and raised 69.3 million.