Stock Prices

23 May 2007

It’s largely symbolic (because Gartner’s market capitalization has always been significantly larger than Forrester’s) but as one who has watched the stock prices of the two companies since they went public, this week represents the first time in over five years (if not ever; I can’t find charting software that enables me to easily compare the two stocks on an absolute dollar rather than relative change basis) that Gartner’s stock price is higher than Forrester’s.  Of greater note, Forrester’s performance in the last year has been in a relatively tight range, and it’s now near the lower end of that range.  By contrast, Gartner is up over 100% in the last 12 months and is trading at/near a 52 week high.  Say what you will about the impact of their research but Gartner’s efforts to drive greater financial efficiency are clearly being rewarded in the financial markets.  Yes, there are other things at work with Gartner’s stock price related to its ownership structure, and it’s not the purpose of this post to fully evaluate the reasons for the price increase, but just to note the symbolism of the moment.

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