The successes of recent initial public offerings from companies like Ariba (Nasdaq: ARBA) and Commerce One (Nasdaq: CMRC) are clear signs that the e-commerce software business is red hot right now. On Friday, the IPO of Quest Software (Nasdaq: QSFT) was the latest e-commerce software play that was embraced by Wall Street.
Quest Software priced its IPO at $14 a share, and the stock closed Friday up 33 to 47, a gain of nearly 236 percent. What’s most impressive about the gain is how much of it came after the stock opened. Shares of Quest Software opened at $20-1/2 and never looked back as investors lined up to buy the stock.
One key factor that separates Quest Software from many of its competitors is the company’s profitability. Quest Software earned more than $2.3 million on nearly $34.8 million in revenue last year.