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Summary:

Professional social net LinkedIn (NYSE: LNKD) more than doubled its share price on its first day of going public on the New York Stock Excha…

Jeff Weiner, Linkedin Ceo
photo: CNBC

Professional social net LinkedIn (NYSE: LNKD) more than doubled its share price on its first day of going public on the New York Stock Exchange, giving it a market value of $8.95 billion. The $45 opening price ended the day up 108.58 percent — closing at $94.25 a share.

In an interview with CNBC (NSDQ: CMCSA), LinkedIn CEO Jeff Weiner was asked if he would have been tempted to sell more shares if he knew the price would soar to over $90. “No, today I’m thinking about really executing on the plan,” he said. “Again, I don’t think you can read too much into these initial trades now that it’s first trading. For us it’s all about the fundamentals.”

With LinkedIn’s successful first day, expect bankers to be even more interested in competing and encouraging IPOs from other internet companies.

Still, after today’s news, the cries of “internet bubble” are only going to get louder. Furthermore, despite bankers clamoring for deals, it’s worth wondering how much more investors will be willing to absorb, ultimately, at least. In the wake of LinkedIn pricing its IPO in March, rival business social net Viadeo decided to withdraw its planned offering in the face of what was eventually a $4 billion valuation for LinkedIn. All in all, investors certainly showed a strong appetite today and it will be interesting to see how the stock does over the next week in terms of setting the trend.

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  1. Fernando Ardenghi Friday, May 20, 2011

    We are facing a large dotcom bubble fueled by venture risk investment funds, with 4 representing companies: Facebook, Twitter, Foursquare and Groupon (investors who are dragging other investors to continue investing until they can sell shares of the company and recover leveraged money, but the last holder of shares is going to lose)
    Many technology companies, without having a concrete business model (supposedly will generate revenue from advertising and premium subscription accounts) receive millions of dollars in funding to offer something free, acquiring fastly a large mass of captive users as if they had made them addicts, and then the exit strategy (for investors) is to get someone to buy the company at a staggering figure, as did Blogger, Fotolog, MySpace, YouTube, Skype, Bebo and others. They are like continually inflating ballons and they need to find a buyer before they explode. Recently Skype (a kite) was privately sold to Microsoft at USD 8,500 million. Skype was first sold to eBay in 2009 which resold to a private group of investors.
    In 2003, 3 friends come together to create each one his social Web site, Reid Hoffman created LinkedIn, Tribe created by Mark Pinkus (then he created Zynga) and Jonathan Abrams created Friendster. Tribe and Friendster were commercial failures, while LinkedIn could never got a private buyer. To sell the shares and turn those pieces of paper in real money, LinkedIn had the strategy of going public, to start trading its shares on the New York Stock Exchange. If LinkedIn could not find a buyer, they will get thousands of buyers purchasing lower small parts (shares).

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