Stock Watch: No Bite for IPO

As expected, the initial public offering of online pet supplies retailer (Nasdaq: IPET) got a lukewarm response on Friday. stock closed its first day of trading unchanged at $11 a share. While does have some advantages like having as an investor, the online pet products market is extremely crowded.’s competitors include PetsMart, Petopia, and Consolidation in this space seems pretty much inevitable. could have a tough time in the future, because investors are increasingly disenchanted with business-to-consumer companies. What’s more, is spending money fast, as evidenced by the Super Bowl commercials it ran. The IPO raised $82.5 million, but that money might not last long. The company lost $42.4 million on just $5.2 million in sales during the fourth quarter of 1999.

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