Anyone Who Still Thinks LinkedIn's IPO Pop Was Good Should Look At Amazon. Did we just have a LinkedIn moment? LinkedIn's IPO success is certainly important to the company and its backers, but the more lasting impact will be within technology at large.
By Jonathan Tower, contributor In the 72 hours since LinkedIn went public, we've heard sweeping re-assessments of technology markets in general, and the prospects for consumer web/social media IPOs in particular. It's hard to argue with success, and LinkedIn (LNKD) was nothing if not a wildly successful offering. Capital markets elites will bicker over some of the "inside baseball" issues having to do with "small float" mechanics or allegations of mispricing, but such quarrels are really just noise in the overall discussion.
Is LinkedIn the new Netscape or the new Google? This week, LinkedIn, the social network for professionals went public and many prognosticators have mentioned it being similar to the stock craze around Netscape at the beginning of the dotcom era.
In order to assess if that were truly the case, I decided to run some numbers against this IPO and also run some comparisons against the Google IPO, which was another tech IPO that was seen as ludicrous at the time. Looking at the basics As frequent readers of TNL.net know, I have to a tendency to try to run some numbers before passing judgement. Oftentimes, I discover that my hunch are correct but, almost as often, I find some interesting and surprising nugget of information in the data. Ultimately, though, it’s a question of gathering the information, something that too few people seem willing to spend time on. So for this IPO, I decided to investigate how some fundamentals may be working either for or against the success of the LinkedIn IPO. What LinkedIn IPO means for private markets? Over the past week, I've argued that the LinkedIn (LNKD) IPO would be the first major validation test of private secondary markets.
If it had priced slightly higher than where LinkedIn shares were trading privately -- $35 per share in February and March, according to SecondMarket – then it would mean the private markets were functioning properly (i.e., discounted prices in exchange for early purchase and lack of financial disclosures). If it were to have priced lower, then secondary market buyers would have fled like Jorge Posada from the 9-spot. So yesterday's $45 per share IPO price fell into the positive validation category. And I'm almost certain that today there is a huge surge in buy-side interest for shares of Facebook, Groupon, etc. So far, so good. To be sure, certain private sales are done to help the seller buy his or her first home, send a kid to college, etc.
The private secondary markets have served a very important purpose for Internet companies. Like this: PETER THIEL: Wall Street Screwed LinkedIn, Mispriced IPO. Post IPO analysis - Henry Blodget. A more bullish pow. Albert Wenger: LinkedIn is Netscape of th... Chris dixon: The LinkedIn IPO success w... LinkedIn IPO Shares Pop 84 Percent On First Trade, Opens With $7.8B Market Cap. This is a big day for professional social network LinkedIn, which was founded in 2003.
After filing its S-1 with the SEC in January, the company has begin trading its shares, under the symbol LNKD, on the New York Stock Exchange this morning. LinkedIn Corp: NYSE:LNKD quotes & news - Google Finance. LinkedIn Closes At $94 Per Share, With $8.9 Billion Market Cap. After opening to $83 per share and a market cap of $7.8 million, LinkedIn closed at $93.86 per share, giving the company a valuation of $8.9 billion.
Although the professional social network priced at $45 per share, trading started at $83 (up 84 percent) and reached as high as $122.70 and as low as $80. In total, LinkedIn raised $352.8 million in gross proceeds from the offering of 7,840,000 shares, with 94.5 million shares of stock outstanding. As CEO Jeff Weiner told Bloomberg TV this morning, he was happy with the IPO price range and cautions against reading into any one day of trading, as the company is in it for ‘the long haul.’ Still, it’s hard not to note just how strong this IPO is compared to others that debuted this year. LINKEDIN IPO: Stock Priced Too Low. LinkedIn CEO Jeff Weiner ‘Very Comfortable’ With IPO Price. Shortly after ringing the bell on the New York Stock Exchange, LinkedIn’s CEO Jeff Weiner talked to Bloomberg Television about the IPO and the company’s future plans.
You can watch the full video here. As we reported this morning, the company began trading at $83.00 per share, a 84 percent increase from initial pricing of $45 per share, giving LinkedIn a $7.8 billion market cap. Shares have climbed as high as $122 per share in mid-morning trading. While some are crying Bubble, Weiner told Bloomberg that he is ‘very comfortable’ with the IPO price range. He said: We spent a lot of time with the right kind of investors–folks who understand the story, the fundamentals, who are in it for the long haul. Sorry, LinkedIn’s IPO Is NOT Proof Of A New Tech Bubble. The IPO of social-network LinkedIn will be priced Thursday. And when the shares start trading, a chorus of pundits will point to the stock price and howl that it is proof that we're in the middle of a new tech bubble. Please. LINKEDIN IPO: Here Are Wall Street's Real Estimates.
Will LinkedIn’s IPO Create Secondary-Market Hysteria? - Venture Capital Dispatch. Lol. 5 Things You Could Buy for $4B Instead of LinkedIn. LinkedIn's Road to IPO [INFOGRAPHIC] Professional networking site LinkedIn had its initial public offering Thursday, with shares of the company debuting on the New York Stock Exchange under the ticker symbol LNKD.
Shares were initially offered at $45, but skyrocketed to as high as $92.99 in early trading. LinkedIn founder Reid Hoffman's stake was estimated to to be worth as much as $855 million at the $45 share price. However, he will now be a billionaire on paper if shares stay at their current levels. Here's an overview of LinkedIn's history and current standing — including who owns just how much of it. Did you — or will you — buy LinkedIn stock today? Click image to see larger version. Information provided by the Credit Score Blog. How LinkedIn first raised money (and endured rejection) LinkedIn went public last week, with investors falling over each other to buy shares at a market cap that now exceeds $9 billion.
But it wasn't always so easy for the social network to raise money. LinkedIn employees in 2004 (Hower is 5th from right), upon hitting 500k users.