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GeoCities continues to climb

Shares of GeoCities Inc. on Wednesday tacked on an additional8 11/16, or 23 percent, a day after its successful initial public offering.
Written by Larry Dignan, Contributor
Shares of GeoCities Inc. on Wednesday tacked on an additional 8 11/16, or 23 percent, a day after its successful initial public offering.

In early trading, Geocities (Nasdaq:GCTY) were at 45 11/16. Shares of Geocities gained 116 percent on Tuesday despite choppy market conditions. After a long delay, Geocities hit the market at 33 and closed at 37 5/8. GeoCities was priced at $17 a share.

The Santa Monica, Calif.-based company acts as a Internet host for Web users that set up sites on the Internet. Geocities was the last of the top 10 Web sites to go public.

The gains for GeoCities were impressive considering the sell-off in the tech sector on Tuesday, but hefty losses had many analysts questioning if the company was worth the hype.

For the past six months, the company reported a $7.3 million loss, extending a $3.6 million loss posted in the year-earlier period, according to a filing with the Securities & Exchange Commission.

Geocities plans to reach profitability this year under the management of former U.S. News and World Report publisher Thomas Evans, who replaced founder David Bohnett in April.

SoftBank Corp., which holds a 71 percent stake in Ziff-Davis Inc. (NYSE:ZD), owns a 30 percent stake in Geocities. ZD Inter@ctive Investor is the financial news channel of ZDNet, the online arm of Ziff-Davis Inc. CMG Information Services Inc. (Nasdaq:CMGI) will hold a 31 percent stake.

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