Shares of MP3.com (Nasdaq: MPPP) rocketed more than 27 percent on Friday, gaining 9-1/2 to 44-9/16, after the digital music destination site announced a deal with streaming media company RealNetworks (Nasdaq: RNWK). MP3.com will weave the music available on its site into RealNetworks’ RealJukebox, which has more than 10 million users.
MP3.com stock also benefited from the buy rating it received from Soundview Technology on Friday. MP3.com has been an extremely volatile stock since going public at $28 on July 20. The stock climbed as high as $105 in its first day of trading, before falling extremely hard in following weeks and trading as low as 23-5/16.
With a current market value of more than $3 billion, MP3.com looks a bit pricey. The company had revenues of just $1.9 million and a net loss of $6.5 million for the second quarter of 1999. It’s going to take some serious growth to justify this valuation.