Shares Of Linked In More than Double In 1st Hour of Trading
2011 May 19
Shares of Linked in, more than doubled from its IPO price of $40 and started trading at $83 a share.
Currently shares are trading at $92 a share.
Linked in is one of first of the new social networking companies to go public.
Update: Linkedin just hit $100 a share
Update2: Make that $110 a share
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wow, it went up as high as $122.70.
It reached $120, then went down to $113.
The valuation is outrageous. It is now trading at more than 1200x forward P/E. Is this the start of a new internet stock bubble? The arguments I keep hearing is that unlike 1999-2000 a lot of these companies coming public are profitable and are growing earnings. That is true. But is the earnings growth sustainable? and why would you pay $83 for .09 cents in earnings? Let alone $120. Maybe after the shares are vested and the insiders start to cash in, we will see a more rational valuation say $55-$65? I dunno but I do know that it is way too rich at the moment.
LinkedIn is one of the best sites of the Web
surely better and more useful than Twitter
and Twitter is now valued $8-10 billion
I can’t wait to see what Max Keiser has to say about this one, bet the big banks managed to screw everyone over again and walk away with a fortune
UPDATE
Linked in closed around $95 a share
High of $122.70
Low $80
Nice spread for the day traders out there
Interesting
http://blogs.wsj.com/deals/2011/05/19/at-linkedins-valuation-apple-would-be-worth-3-trillion/?mod=yahoo_hs
I wonder how many people got a message like this today: “Shares of this security are currently not available to short sell.”
Well, I guess it will be fun to watch the stock in the next few months….
And take a look at Demand Media (DMD) if you need a reminder of how ugly it can turn…
Hi,
And in part what contributed to this, is the fact that there was only 7.8 million share being issued. ( designed on purpose…create very little supply, when you know there is a lot of demand)
And you know a significant allotment was to the “heavy hitters” and their ‘special’ clients…who all got their shares at the $48 IPO price… WAY before the “bell ever rang”.
It opened up at the “ringing” of that bell @ $93 ~ for all us “plain folk”
Great, marketing strategy for the ‘fellows’ in @ the IPO price…
Not so sure in the long run…for “plan folk”.
But,
Hay…they have plenty of room to issue more stock down the road, if they need to…that is for sure.
Peace!
Dan
… reminds one of the .co bubble …
Linkedin’s success doesn’t really surprise me in terms of crazy valuation as it is a very solid name online. I am excited by the fact that linkedin has 100 million users tells me their is a very large demographic of professionals online that raises the bar for me on future growth prospects for the .pro extension that caters to those business people. basically, I think this IPO success may translate into investment and bring greater interest into other areas of the internet that cater to this demographic.
Hi,
@ Steve M
Very Funny A Clever!
Best,
Dan
*Not wishing .co or Linkedin not doing well* ~ but ~ funny is funny
The tricks and games at the expense of the little guy is amazing.
“LinkedIn might have gotten screwed out of $130 million, but the early members all did pretty well for themselves.
About 30 people became millionaires today, and a few became billionaires.”
businessinsider.com/heres-whos-getting-filthy-rich-from-the-linkedin-ipo-2011-5#
the LinkedIn’s platform has many possible expansions in business (free and paid) services and may become very profitable (just IF they have and apply the right ideas, of course)
Hi,
They did ad an ” advertising’ option about a month ago for the first time…
I have not tried it yet, but here is the breakdown of the demographics of their membership…along with their advertising information.
http://www.linkedin.com/advertising?src=en-all-el-li-hb_ft_ads&trk=hb_ft_ads
Peace!
Dan
Facebook already makes lots of money with its targeted ads and the same thing (or better) can do LinkedIn
thanks for the link
Anyone want to venture a guess on where LinkedIn’s stock price will be just after the lock-up period expires in six months? There was an interesting article on Marketwatch this morning discussing SecondMarket (buying & selling pre-IPO shares) and that you could have gotten shares of LinkedIn for $13 bucks this time last year. Whether this thing is trading at $50 or $100 in December when these guys can cash out, that’s going to be a nice return.
Hi,
“Round Two”:
IPO Watch: Drafting Off LinkedIn, Yandex Looks To Price $1.1B IPO Monday
Quote:
“At the top on the list is Russia-based search engine Yandex, which is expected to price as early as Monday and could start trading on the Nasdaq Tuesday under the ticker YNDX, according to IPOScoop.com and IPOBoutique.com. Like a race car driver, Yandex could draft off of LinkedIn’s momentum and the rabid interest in Internet stocks this week. We’ll see if LinkedIn opens the floodgates.
Yandex is offering a total of 52.7 million shares, including 15.4 million from the company and 26.8 million from selling shareholders. The price range is $20 to $22, putting the offering at close to $1.1 billion at the middle of the range. Yandex would have a market cap of $6.7 billion at the middle of the range.
Yandex has the largest search engine in Russia with 64% market share, according to Russian measurement service LiveInternet. Yandex has also been rated the most popular website in Russia, according to Alexa.com. Even Google, with about 22% in recent market share, has a tough time against the local Yandex. Yandex in Russia had 38.3 million uniques, the company says. It also operates in Ukraine, Kazakhstan and Belarus.” End Quote
Article Continues At:
http://blogs.forbes.com/tomiogeron/2011/05/20/ipo-watch-drafting-off-linkedin-yandex-looks-to-price-1-1b-ipo-monday/
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Dan
Dan
Already have my eyes on the Russian company
http://finance.fortune.cnn.com/2011/05/20/next-huge-internet-ipo-is-not-facebook/
it’s core user is a ‘professional’ so their ad dollars could really jump
a prime target end user is part of the play on that stock
Hi,
@ “MHB”
Very little gets by you and your almost the first to be ‘In The Know’…as you know I know
This offering it much different than “linkedin’s”…I would not expect the same kind of price moves…but we will see. (but is certainly~ no small deal)
I personally will not clink on any URL that ends in .ru, not even this ‘SE’s'…just that I know no one in Russia…and they have people that create the most sophisticated malware,keyword loggers and virus in the world.
No offensive attended towards Russia its self….and I wish I did have a few friends in Russia.
____
As for linkedin…they did a great job of creating extremely high demand for very few IPO shares…
Valuations are extremely high on the company right now…but about a month before the IPO. (of course)…they introduced their first ever, advertising platform.
I expect, if it is a decent one…revenues and income will be significantly higher in the future…plus, they now have capital to acquire other company’s…that can complement their business and provide additional revenues and income.
So, if they do things right in the coming months…the stock valuations should become more realistic.
Just a few thoughts…
Best,
Dan
Hi,
Just a little “follow up” on the: Yandex IPO
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Yandex IPO Raises $1.3 billion, More Than Expected
http://www.ibtimes.com/articles/150632/20110523/yandex-ipo-raises3-billion-more-than-expected.htm
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‘D’