Shares of Rocket Fuel (NASDAQ: FUEL) literally took off on its first day as a publicly traded company. After pricing at the high end of the expected $27 to $29 range, shares more than doubled during Friday’s trading, reaching $62.40 before closing at $56.10, a jump of 93% over the IPO price.
At the closing price on the first day of trading, Rocket Fuel had a market value of $1.8 billion, which is 10 times its estimated 2013 revenues.
The success of Rocket Fuel illustrates the increasingly recognizable ability to utilize sophisticated technologies to improve the performance of digital advertising.
Based on its rapid growth, MediaMath is considered one of the most successful of our “high traction” partner companies. MediaMath helped pioneer the concept that has now evolved into an entire industry that utilizes sophisticated algorithms and high-speed computers to improve the performance of digital advertising. In addition to continually strengthening its original platform, MediaMath has recently acquired companies with complementary mobile and video technologies that have expanded its reach into the fastest growing segments of the markets.
The enthusiastic response with which the public markets greeted the Rocket Fuel IPO is only the beginning. As advertising dollars increasingly gravitate from offline to online media, demand will surely rise for services that can help advertisers more effectively succeed in this new medium.
That is why we continue to fuel the strategies and tactics of Joe Zawadzki and his team to rocket MediaMath to the head of the class.