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theglobe soars after split
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April 8, 1999: 6:08 p.m. ET
Shares of Web firm jump 26 percent after announcing 2-for-1 stock split
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NEW YORK (CNNfn) - Shares of theglobe.com inc. soared 26 percent in after-hours trade Thursday after the Internet firm announced a two-for-one stock split.
After the official close of trading on the Nasdaq stock market the New York-based online community set a split applicable to shareholders of record on May 3. The split will take effect May 14.
On the heels of the announcement, theglobe.com (TGLO) soared to 74-1/2 in after-hours trade on the Instinet system after closing at 59, up 1-1/2, in Nasdaq trading.
Analysts noted that theglobe.com has been the subject of takeover rumors, particularly in light of Yahoo! Inc. 's (YHOO) recent acquisition of GeoCities (GCTY).
Adam Schoenfeld, senior analyst at Jupiter Communications, said Web portals are attracted to the customer loyalty that Web communities provide.
"Online communities are one of those sticky applications where users come back again and again," Schoenfeld said. He added that theglobe.com makes for a particularly attractive target because its stock is well off its 52-week high of 97.
One analyst who requested anonymity, however, said acquisition speculation surrounding theglobe.com probably had little to do with its after-hours surge, since those rumors have been swirling for some time now. The analyst added that retail investor enthusiasm for stock splits was the likely cause of the gain in after-hours trade.
This isn't the first time investors have flocked to the company. theglobe.com holds the record for the most successful initial public offering on a percentage basis, soaring 606 percent in its first day of trading last November. 
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