LinkedIn IPO ... go for it?

[Maverick2002]

Thoughts?

 

[sandmanwake]

Way overpriced.

 

[halik]

lulz, all on black, great portfolio strategy.

 

[Farang]

Overpriced, but a case could be made for gambling on it. Just know going in it's a house of cards.

 

[Demo24]

IPO price somewhere over 40? lol. IPOs in general are a gamble, it could go either way quickly and lately I've just been watching them plummet. Unless you just feeling like gambling on it I can't see why you would want to put any decent amount of money in it, and it would take decent enough to make it worthwhile.

 

[lothar]

lulz, all on black, great portfolio strategy.

This.

 

[SSSnail]

No.

 

[lothar]

Way overpriced.

What do you think it's worth?

 

[yllus]

I was in the job market late last year and all of the recruiters I talked to were positively in love with LinkedIn.com. For the rest of us, I wonder how useful it really is?

The Globe & Mail - LinkedIn almost doubles in stunning market debut

Shares of LinkedIn Corp. (LNKD-N) were bounding higher today - far, far higher - in what was a stunning success for the social networking site.

The stock just about doubled from where the company priced them in its IPO, at $45 (U.S.), the high end of its range, indicating high demand.

Some believe the valuation is much too frothy.

“The valuation for LinkedIn is rich,” Michael Moe, chief investment officer of GSV Capital Management in Woodside, California, told Bloomberg Television yesterday.

Note that was yesterday, before today's pop on the New York Stock Exchange. Yesterday, when the IPO was priced, the company was valued at more than $4-billion. So now it's somewhere in the $8-billion range.

“To earn the valuation, it has to continue to grow very, very fast," he said.

As The Globe and Mail's Simon Avery reports today, the LinkedIn IPO and debut is a test case for other social media services such as Facebook, Twitter and Groupon.

 

[bignateyk]

I'd be selling like crazy before it tanks.

 

[MotF Bane]

Holy crap.

 

[Farmer]

When will this social networking bubble go? First Facebook, now this.

How can anyone believe this growth is genuine.

Rampant speculation. I just wish I were ten years older with more saved up, because there is a ton to be made riding this bubble.

 

[edro]

People actually use LinkedIn?
How does it generate cash?

 

[Farmer]

People actually use LinkedIn?
How does it generate cash?

Yes. Investors probably think this will be Facebook-like, and will hit tons of traffic and ad revenue, so their investing now expecting that type of growth. I obs don't know the details of their business model.

The social networking bubble.

 

[SearchMaster]

People actually use LinkedIn?
How does it generate cash?

Yes.
They have a dedicated sales staff for hiring services, business services, etc. They don't generate enough revenue to warrant the stock price, by a long shot, but they have a rich set of data like Facebook that everyone is speculating will be monetized effectively in the future.

 

[yllus]

People actually use LinkedIn?
How does it generate cash?

I'd argue that absolutely anyone in the technology sector should have a LinkedIn account, if just for the presence when looking for new work (I know I looked up everyone I interviewed there).

There are Business, Business Plus and Executive account subscription plans that let recruiters get better access to profiles and general industry data. Similarly, there are "Talent Finder" plans and "Job Seeker" plans.

You also must pay to list a job ad on the site ($195 for 30 days). So there are real income plans in place.

 

[RichieZ]

as a former employee who just had a liquidity event: today is a great day!

 

[Farmer]

as a former employee who just had a liquidity event: today is a great day!

Congrats!

Next big thing: Dropbox? I know this is a pretty sought after gig for top level CS grads.

 

[Aharami]

i know it IPO'd at $45, but what could the average joe buy in at? Google finance shows lowest at $83 this morning. So it is a case of only big time investors/investment managers/and institutions getting in at the $45 price pre-market?

 

[maziwanka]

i know it IPO'd at $45, but what could the average joe buy in at? Google finance shows lowest at $83 this morning. So it is a case of only big time investors/investment managers/and institutions getting in at the $45 price pre-market?

yep. that's right

 

[sactoking]

LinkedIn at $90 (or even $45) is proof positive that there is a sucker born every minute.

 

[BeauJangles]

I'd argue that absolutely anyone in the technology sector should have a LinkedIn account, if just for the presence when looking for new work (I know I looked up everyone I interviewed there).

There are Business, Business Plus and Executive account subscription plans that let recruiters get better access to profiles and general industry data. Similarly, there are "Talent Finder" plans and "Job Seeker" plans.

You also must pay to list a job ad on the site ($195 for 30 days). So there are real income plans in place.

I believe they generated about $280 million in revenue. Having a valuation nearly 30 times your revenue earnings is just silly though.

 

[Ghiddy]

When will this social networking bubble go? First Facebook, now this.

How can anyone believe this growth is genuine.

Rampant speculation. I just wish I were ten years older with more saved up, because there is a ton to be made riding this bubble.

Head just exploded. No one believes the growth is genuine. Your last sentence is exactly the type of logic that creates the bubble in the first place. Studies have shown that during a bubble no one actually believes the security they are buying is worth what they are paying for it. They only buy it because they believe it will rise in value anyway.

 

[ElFenix]

i know it IPO'd at $45, but what could the average joe buy in at? Google finance shows lowest at $83 this morning. So it is a case of only big time investors/investment managers/and institutions getting in at the $45 price pre-market?

and this is why no one has ever turned down their investment banker when the banker asks if they want in on an IPO. no one has even asked for details. and if you ever say no you will not be invited back.

which is why SEC regulation of IPOs is pointless.

 

[Capt Caveman]

Not a stock to hold onto but to buy at the opening and sell later in the day. Wish I could have gotten in at $83 this morning.