Stock Watch: Expedia IPO Takes Off

The initial public offering of Expedia (Nasdaq: EXPE), the online travel service owned by Microsoft (Nasdaq: MSFT), was expected to do well when it went public on Wednesday. The expectations were certainly met, if not exceeded.

Shares of Expedia, which priced at $14, closed up nearly 282 percent, rising 39-7/16 to 53-7/16. The stock opened at 38 and traded as high as 65-7/8.

This first-day performance gives the company an impressive market value of more than $2 billion. Wednesday's trading was clearly an impressive showing for Microsoft's first Internet IPO, and perhaps a sign that Microsoft could actually unlock a lot of value by spinning off other parts of its Internet business. Stay tuned. More Microsoft Internet IPOs could be on the way.