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. 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. 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. LinkedIn Corp: NYSE:LNKD quotes & news - Google Finance.
LinkedIn Corporation (LinkedIn) is a professional network on the Internet with approximately 277 million members in over 200 countries and territories.
The Company’s Free Solutions includes ability to manage professional identity, ability to build and engage with professional networks, access to knowledge, insights and opportunities and ubiquitous access. The Company generates revenue across three product lines: Talent Solutions, Marketing Solutions, and Premium Subscriptions. All three product lines are sold through two channels, an offline field sales organization, which engages with both large and small enterprise customers, as well as an online, self-serve channel where it generates revenue from both enterprise customers and individual members purchasing subscriptions. 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.
At $83 per share, Weiner’s shares are worth $190 million. He also said that the company will be using the new funds for investments in small acquisitions, technology and additional expansion, especially in Europe. 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. Before you go and buy LinkedIn (LNKD) shares at the IPO price of $45 - a $4 billion valuation (Ed: Shares are now trading hands at $83), it's worth looking to see what else you could get for the money.
So here's my top 5 list of things to buy for $4 billion: 5. Inergy (NRGY). Inergy is an MLP that stores, transports, and markets propane and natural gas. With a market cap of $4.01 billion, it generate vast amounts of cash and has a very stable customer base of people who don't want to freeze in the winter. 4. 3. 2. 67 Boeing 737 airplanes. 1.
Disclosure: I will probably buy LNKD puts as soon as they're traded. Receive future articles by this author via email: Follow and be the first to know when they publish. Follow MLP Trader. 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.
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.