Morissette makes a killing on Wall Street
Canadian singer Alanis Morissette has parlayed an investment of $217,355 US into an impressive $41.4 million. That's the value MP3.com Inc., a San Diego-based Internet music distribution business, reached at the end of last week.
The hot stock, which went public last Wednesday on Nasdaq, jumped from an initial price of $28 US to as high as $105 during its first day of trading. It closed last Friday at $62.93 US.
The National Post reports that some analysts are questioning the long-haul potential of MP3.com, which uses a technology that compresses CD and other music files and distributes them over the Internet.
Mark Hardie, an analyst with Forrester Research Inc. in Cambridge, Mass., told the newspaper, "I believe it is going to go through the floor at some point. It is a dot-com address. Without question, the business behind it is not a $100-million or billion-dollar revenue one. It is barely a small label."
Using MP3.com's technology, people can download music from the Internet free of charge, ignoring royalties or copyright.
The firm's Web site www.mp3.com contains more than 100,000 songs from about 18,000 artists. The company gets its revenue from advertising and music sales.