10 IPOs that flopped
A visit to the California headquarters of eToys in 1999 would wow any visitor. Employees zipped around from one end of the office to the other on Razr scooters. The floor plan was mostly open and the amenities were generous. There were toys everywhere. That year, the etailer went public at $20 per share, but the price soon shot up to a high of $84.
By 2001, however, eToys was in serious trouble. The company had great commercials and awesome inventory technology, but both cost a bundle. Suddenly, eToys was hemorrhaging cash. By October 1999, shares of the onetime high-flyer were trading for nine cents. Nine cents. YuGiOh cards would have been a better investment. The online retailer was eventually bought by KB Toys, owned by Bain Capital. The web operator has come back for yet another run, this time under the ownership of Toys R Us.