Priceline.com : the disappointments of reversed auction sales

If you can earn a lot of money by speculating on the Net economy securities of the Nasdaq, you can also loose a lot. Let’s see what happen to one of the stars of year 2000, Priceline.com, a start-up presented as examplary in spring time and which even managed, at that time, to entice one of the most famous financial directors in Wall Street, Heidi Miller, from Citigroup. Such a newcomer contributed to set all the investors’ minds at ease. Early March, the share reached $104. On Friday December 29th, it worthed only $1.28 when the Nasdaq closed. What a wreck !In the meantime, the concept which was the base of the company, the reversed auction sales (the navigator gives the price he’s ready to pay for a good or a service), has proved to be limited. The company has had to lay off. It stopped groceries to focus on what payed the most, journeys and plane tickets. Heidi Miller has left and just before the end of the year, Priceline.com announced that its founder, Jay Walker, the inventor of the concept, also left. With regard to those who invested early March, they don’t even dare to make up their accounts…