Shares of e-commerce software company Commerce One (Nasdaq: CMRC) thundered ahead nearly 20 percent on Tuesday, soaring ahead 19-15/16 to 138-15/16. This move came just one day after the company reported third-quarter results. Commerce One had third-quarter revenues of $10.4 million, a 147 percent increase over revenues in the previous quarter. The overall net loss for the quarter was also $10.4 million, or 45 cents per share, which was in line with analysts’ expectations.
With a market value of more than $3.3 billion, Commerce One is obviously trading at a very high multiple of its revenues, but investors and analysts seem to love e-commerce infrastructure companies right now. Prudential upgraded Commerce One from accumulate to strong buy on Tuesday.