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Juniper IPO blossoms
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June 25, 1999: 5:47 p.m. ET
Internet network-gear firm soars 191 percent in first day of trading
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NEW YORK (CNNfn) - Shares of Juniper Networks Inc. soared 191 percent Friday as the Internet networking equipment firm made its debut as a publicly traded company.
The Mountain View, Calif.-based company closed at 98-7/8, up 64-7/8 from an opening price of 34. Its shares were up as high as 106 earlier in the session.
Juniper (JNPR), a three-year-old company that makes high-speed Internet routers -- devices that connect various networks -- enters a market dominated by Cisco Systems Inc. (CSCO).
Juniper, which includes MCI WorldCom (WCOM) among its customers, posted revenue of $10 million in its most recent quarter, compared with Cisco's $3.15 billion.
Nonetheless, analysts said investors were impressed with Juniper's business model.
"They have all the characteristics necessary to be a successful technology IPO," said Gail Bronson, analyst at the IPO Monitor. "They have a strong business model and technological solution for a standing problem in the marketplace. Although they face stern competition, they offer a good technology alternative."
Internet infrastructure companies, or those offering Internet-related technology, are the "next big play," said David Menlow of IPO Financial Network.
Juniper is "in the need of some lithium to bring it down to earth," Menlow said. "It's mind-boggling that a stock goes from $34 to $100."
Goldman, Sachs & Co. (GS) served as lead underwriter for Juniper's offering of 4.8 million shares.
-- from staff and wire reports
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Juniper Networks
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