FreeMarkets shares rose $34.75, or about 20 percent, to $206 in trading of 1.2 million shares. Earlier, the shares touched $218.
Pittsburgh-based FreeMarkets lost one of its biggest clients this month when General Motors ended a contract and shifted its business to Commerce One. FreeMarkets said today that 34 customers bought parts and materials using its auction system in the fourth quarter, up from 18 customers in the third quarter.
"This is further indication of the dynamic nature of the FreeMarkets platform and its continued ability to attract vendors as customers," said Ryan Alexander, an analyst at Wit Capital, who rates the stock "buy."
New customers included Raytheon, BP Amoco, General Electric and United Technologies, the company said.
On Jan. 4, FreeMarkets said General Motors would cancel its contract, which had declined to about 10 percent of total revenue in the fourth quarter ended Dec. 31.
Copyright 2000, Bloomberg L.P. All Rights Reserved.
Play video
There are currently no comments for this post.