Credit: Shutterstock photoThe cloud-based business management operator for wellness service companies, Mindbody Inc. (MB), started trading publicly Friday morning, with an IPO price of $14 per share. After fellow health and wellness technology company Fitbit (FIT) saw a 48% increase from its IPO price after its first day of public trading yesterday, Mindbody was hoping to see similar success with its own stock price.
Mindbody did not get the results it was hoping for. The company's stock, which opened at $16.22 per share, closed at a decreased price of $11.56 per share, lower than its IPO price. The drop, which was $2.44 per share, or 17.43%, was a change from the recent IPOs of companies such as the previously mentioned Fitbit, as well as Wingstop (WING) and DavidsTea (DTEA) whose first day of trading brought significant stock price increases to their shares.
Mindbody clearly did not excite investors like the above listed companies have in the last few weeks, as it had issues in turning profits despite seeing significant revenue growth. The company has posted net losses in each of the last three years since 2012, with the recent first quarter of this year seeing an increased net loss that was 62.3% compared to the first quarter of last year 2014. (Read more about Mindbody's past years' performance from Zacks)
The company was looking for its public offering to bring about an influx of cash, as it currently has a less than satisfactory cash level. If Mindbody can tap into the expected growth of its industry and reverse its trend of net losses for its fiscal years, the company could be one that investors should have in their portfolios. As for now, the question is still to be answered for Mindbody's worth and potential to investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
