“In December, computer maker VA Linux set the record for the
largest gain in stock price ever on the first day of trading. The
company’s stock, offered at $30 a share by the company, soared more
than 697 percent to close at $239.25.”
“But VA has since seen its value drop by more than 50 percent.
The stock declined further yesterday to close at $108.63, despite
posting a second-quarter loss in line with Wall Street’s
expectations. In midday trading today, VA Linux was down about 2
percent to $106.25.”
“Despite the mix in results, analysts say Linux still
resonates with investors. With the growth of e-commerce, the
popularity of the upstart OS is expected to grow as Web site
owners load up on more hardware and networking equipment. Linux
offers a way to cut costs.”