Shutterfly Soars During Nasdaq Opening
Shares of Shutterfly (NASDAQ:SFLY), a former Inc. 500 photo website, climbed as high as 11 percent above its initial public offering price, before closing its first day of trading up nearly 4 percent.
The Redwood, Calif.-based firm, which ranked No. 170 on Inc. magazine's list of the nation's fastest-growing private companies in 2005, closed on Friday at $15.55 a share, 55 cents higher than its initial offer price. On Monday, the share price held steady, dropping just 0.08 cents.
Shutterfly, which allows users to upload and share photos and purchase prints, began trading on the Nasdaq Global Market under the ticker symbol SFLY last week, after filing an IPO on June 29. The IPO raised $87 million on Friday, according to the company.
The company, founded in 1999, generated $83.9 million in revenue last year, according to documents filed with the Securities and Exchange Commission.
While Shutterfly projects that the photo print market will hit $30 billion by 2009, growing competition from Eastman Kodak (NYSE:EK), Yahoo! (NASDAQ:YHOO), and other online photo services has prompted the company to expand into a wider range of photo-based products, including greeting cards, scrapbooks, and calendars.