Doubleclick Ipo Gains As Much As 87% In Debut

NEW YORK - Investors snapped up shares of an Internet advertising company today, pushing DoubleClick stock up as much as 87 percent in its first day of trading.

The New York-based company's stock climbed as much as $14.75 to $31.75; near the close it was up $10.375, or 61 percent, to $27.375..

The Internet-advertising company's quick run-up comes at a time of mixed results for Internet companies. Netscape Communications is struggling amid competition from Microsoft over market share for Web browsers. Yahoo!, the top directory company, was the best-performing U.S. stock last year.

DoubleClick's losses have mounted steadily during its two years of operations. The company faces "a couple of big red flags," said Jim Nail, a senior analyst with Forrester Research. He predicted the stock would fall back.

The company's main product is the DoubleClick Network, a service that delivers targeted advertisements to more than 60 Web sites.

DoubleClick's losses grew to $8.4 million in 1997 from $3.2 million in 1996, its first year of operation. In its filings with the Securities Exchange Commission, the company said it expects operating losses to continue "at least into 1999." The company's revenue grew to $30.6 million in 1997 from $6.5 million in 1996.