Shares of NetObjects (Nasdaq: NETO), which develops software to help small businesses get online, soared nearly 33 percent on Thursday, rising 1-27/32 to 7-7/16 after announcing a Web-hosting alliance with Concentric Network. From now until September 30th, customers who purchase NetObjects Fusion 4.0 software will received a year of free Web hosting from Concentric. Customers can also opt for a $200 rebate.
Wall Street cheered this deal even though it doesn’t really seem much different from a price markdown or other promotional offer that probably will increase sales while decreasing margins. That may be because NetObjects looks like a relative bargain compared to most Internet stocks. Even after Thursday’s gain, the stock is considerably off its May initial public offering price of $12.