Even after shares of many B2B leaders picked up in June, many investors stayed away. Boy, are they sorry now. The faithful who held on have been richly rewarded since July 12, when procurement-software maker Ariba turned in impressive results.
Investors seem to think the strong results signal a turning point in the industry.
Such soaring sales figures demonstrate that the demand for B2B e-commerce software is starting to make inroads into the heart of Corporate America. Companies are more willing to get this stuff rolling,'' says Brian Salerno, a manager at Munder Capital Management who owns Ariba. Yet even as it takes off, the B2B marketplace is quickly bifurcating into leaders and laggards. So far, Ariba is viewed as the top dog. Investors still seem wary of such exchanges because their business models hinge on generating access and transaction fees. ''There are too many marketplaces,'' says Munder's Salerno.