After increasing its IPO price to $45 from $42, LinkedIn’s first day of trading this morning was already off to a strong start. Investor demand sent the price shooting up, more than doubling to $92.99 barely an hour after the market opened before settling between $87 and $90 by 11:30 am.
The professional social net debuted on the New York Stock Exchange today with a market value of $4.275 billion. Naturally, the price has many questioning whether we’re in the midst of another bubble.
“The valuation for LinkedIn (NYSE: LNKD) is rich,” said Michael Moe, chief investment officer of GSV Capital Management, told Bloomberg. “To earn the valuation, it has to continue to grow very, very fast.” More to come