Shares of Webstakes (Nasdaq: IWIN), an online sweepstakes promoter that helps businesses market their products and services, soared more than 21 percent on Tuesday, gaining 2 to 11-1/2. The rise came one day after Webstakes announced that Compaq has become a client.
Webstakes stock is still recovering after the company went public at $14 a share in September. The stock fell as low as 5-15/16 before rebounding. Considering that so many businesses are trying desperately to get the attention of online shoppers this holiday season, December could be a strong month for Webstakes.
Webstakes has a relatively small market value of less than $164 million, and has an impressive customer base. Clients include NBC, Disney, Autobytel.com, Sportsline.com and Citibank. NBC is also an investor in Webstakes, along with Excite@Home. Shares of Webstakes continued to soar in early trading today, gaining 2-1/4 to 13-3/4.