Shares of Yandex, which were sold for $25 (16 pounds) a piece on Wall Street, rose further by 40pc in their first day of trading Tuesday on the Nasdaq, valuing the company billion $. The first is less than a week after the actions of LinkedIn, the professional networking site, has more than doubled on the first day of trading.
Account assessments required of these two companies raises concerns that investors are repeating the error of ten years, when the dotcom companies shares soared before crashing spectacularly. Most analysts say puzzle of today is not whether internet companies are money - those who attempt to float are - but if they can support the growth of the profits necessary to justify their assessments.
Currently, Yandex, which was founded by two technologists who have gathered at the school, enjoys a 65pc of the market share of the research in Russia but faces a tough competition to Google. Russia online advertising revenues jumped 51pc in the course of the past two years, according to the Association of the agencies of Communication, which is based in Moscow.
The flotation, which saw Yandex raise 5.3 $1, has also seen existing investors, including hedge fund Tiger Global Management, sell a portion of their shares. Goldman Sachs, Morgan Stanley and Deutsche Bank managed the sale.
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