Initially priced at $15, the stock soon rose to well over $21, more than 40 percent above the vendor's range. At close of trading this afternoon, the shares were priced at $24.95.
Analyst firm The 451 Group takes this as further evidence of the changing economic climate for storage vendors. "The fact that Data Domain priced well above its expected range indicates that investors are once again willing to pay top dollar for explosive growth at technology companies," said research director Simon Robinson in a note today, alluding to strong first-day trading from the likes of Isilon and Double-Take. (See Double-Take, Isilon Go Public, Isilon Announces IPO, and Double-Take Seeks IPO.)
Isilon, of course, came to earth with a bump earlier this year, suffering ongoing losses in its first quarter as a publicly traded company. (See Isilon: The Honeymoon's Over.) Despite growing revenues, analysts urged the NAS specialist to seek out larger deals in an attempt to narrow its losses. (See Isilon Reports Earnings and Isilon Bleeds, Vows Profits.)
The laws of gravity dictate that firms cannot bask in the warm afterglow of an IPO forever, something newly public firms Mellanox and Riverbed well know. (See The Slings & Arrows of IPOs.)