7/17/2023 0 Comments Linkedin stock price history graphShares rose 29% on its first day of trading earlier this month, but are now trading below their offering price. The so-called Facebook of China, Renren ( RENN), has also struggled. Demand shares drifted higher the next two months - but then plummeted a whopping 30% in April. Online content company Demand Media ( DMD) went public in January and rose 33% in its first day of trading. As recently as spring 2009, LinkedIn valued itself at just $2.32 a share.Īnd some other splashy tech IPOs this year have started to fizzle Investors will be looking to LinkedIn's stock performance as a possible indicator of when these four may also look to go public.īubble concerns: Even as LinkedIn shares surged, investors remain concerned about a tech bubble.Īt a $10 billion valuation, LinkedIn is trading at nearly 670 times last year's earnings. The other four - Facebook, Twitter, Groupon and Zynga - are still private. LinkedIn is one of the"Big 5" private tech companies that have attracted massive investor buzz as the tech IPO market thaws.Ġ:00 / 5:07 LinkedIn IPO sets stage for Facebook Prior to last year, the company had been in the red every year since its 2003 inception - except for 2006, when it turned a slight profit on revenue of $32 million. In 2010, the company's last full fiscal year, it earned $15 million in profit on sales of $243 million. Road to profitability: In an updated SEC filing Tuesday, LinkedIn said it turned a profit of $2.1 million on revenue of $93.9 million in the first quarter. It now has more than 100 million users, with more than half of its members located outside of the United States. I wouldn't be surprised if LinkedIn signs up a lot of new people in the coming weeks."Īs of November, LinkedIn was adding one new user every second. "Linkedin has never been the biggest story in the news, and it may never be again, but it is today," he said. "It's psychological, emotional, pent-up demand for tech IPOs."Įven if the stock price cools, LinkedIn's headline-grabbing day could have positive long-term effects, Wolff said. "There's no standard valuation model that explains the current price," Wolff said. Wolff said LinkedIn's $45 per share pricing was "an aggressive but valid bet on future growth." But he's not so convinced about the resulting run-up Thursday. Max Wolff, senior analyst at GreenCrest Capital, a firm that tracks private companies, said the 7.84 million share offering was "very small and oversubscribed." The company raised more than $350 million in its offering, making it one of the largest tech IPOs since Google ( GOOG, Fortune 500) in 2004. They hit a high of $122.70 in late morning trade before slipping back to close at $94.25 a share.Īt that price, LinkedIn is valued at about $9 billion. The stock opened at $83 and quickly rose above $90, where it stayed for most of the morning. Shares of LinkedIn, which caters to businesses and job seekers, began trading Thursday on New York Stock Exchange under the ticker symbol LNKD ( LNKD).
0 Comments
Leave a Reply. |