As I mentioned in a previous post on the social networking site LinkedIn, this business based site allows users to connect to past, present, or future business contacts in effort to exchange ideas, knowledge, or perhaps even new opportunities. It also helps users to build a working portfolio that is supported by the very companies, or the leaders of the companies, that are listed on your LinkedIn profile.
One of the best available sites for career recruiting and networking, increasingly more and more often, it has become less unusual for prospective employers to ask for a link to a LinkedIn account than ever before.
Stock Market Stalled
At an initial public offering of LinkedIn stock, shares were priced at $45 on Wednesday night, by the time the stock market opened this morning, the stocks had risen to $83 per share. Within just a few hours, LinkedIn (LNKD) stocks had risen by 131% to be $104.02. This brings the current value of LinkedIn to over $9 billion dollars.
This offering of 7.84 million shares is hands-down, the biggest net IPO since GOOG, or Google, went public in the summer of 2004. This goes to further show that somewhere lurks an immense group of investors who believe that smart money rest in social networking. One firm reports that LinkedIn may now be the most expensive stock in the country. With a current price that is around 275 times more than its earnings in the last four quarters, this certainly indicates that those groups of investors may, in fact, be right on target.
Sign of the Social Media/Networking Times?
As the LinkedIn IPO is being gauged for effectiveness by other social networking giants such as Facebook, Groupon and other similar social networking sites, others believe the IPO has also been controversial as many on Wall Street as well as those in Silicon Valley believe that some investors have been taken in by an Internet bubble.
Some investors are simply just confused about how we should value any companies that are debuting online. Although others, like IPO analyst like Scott Sweet, say that LinkedIn’s spectacular market debut was a great sign for other social networking companies.
Who Uses LinkedIn?
Alexa gives LinkedIn an impressive global ranking of 17 with around 14% of their referrals coming from search engines. Most users are females between the ages of 25 and 64 who are highly educated and more often than not are browsing from home. The site is listed under the Social Networking category.
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