41–50 of 165 posts
Almost $100/user, not even including active users... that is insanity.
The current valuation is ~$8.5 billion, wikipedia puts them at ~100 million users. That works out to be ~$85/user.
The way this stock is moving now, a stock price of $83 seems downright conservative.
The IPO should have probably been priced a little higher. Closer to $70 or $80, given this type of demand. The people that were in on the IPO got a very nice return this morning, provided the stock price stays this high for a little while. Also, LinkedIn would have raised something closer to $700 million or more, had the IPO been priced more accurately. Does anyone know who the underwriters were?
Almost $100/user, not even including active users... that is insanity.
The current valuation is ~$8.5 billion, wikipedia puts them at ~100 million users. That works out to be ~$85/user.
right now's not the time to pick nits on their valuation this whole thing is going to be completely out of whack for a while.
Earlier quoted context omitted.
There always is.
Not always. There are some companies that don't have enough liquidity to effectively make that trade or have no investors willing to lend the shares. Not to mention shorting (or options) aren't even allowed yet on this particular stock.
LinkedIn made $15 million dollars last year, and they just raised $660 million dollars out of the gate in this IPO. And, this IPO values LinkedIn at somewhere close to 6.5 billion dollars. A valuation of 6.5 billion dollars on $15 million net income. Let that sink in.
Earlier quoted context omitted.
Based on there IPO prospectus from sec.gov: Year; Revenue; Costs; Income 2008; 78,773; 84,282; (4,522) 2009; 120,127; 123,482; (3,973) 2010; 243,099; 223,523; 15,385 expense growth is 46%, 82% yoy. revenue growth is 52%, 103% yoy. So, you have a company that is growing revenue faster than expenses, has 100% year over year revenue growth, and has just hit the inflection point to be profitable... and you want to place…
Exactly. If LinkedIn can make $243M/year selling to recruiters and job seekers in a recession, what do you think happens when we have a global recovery and the inevitable hiring boom comes?
Almost $100/user, not even including active users... that is insanity.
Imagine a Facebook IPO that reached $100 per user...
BTW I made a Tagxedo (word cloud) of this morning's LinkedIn News, and one prominently featured word explains all (the word starts with "F" and ends with "k" :D)
http://daily.tagxedo.com/may-20-linkedin-rockets-skyward-in-...
Earlier quoted context omitted.
At times like this I'm tempted to short the stock, or at least wait a month or longer until there's sufficient shares to short and not immediately get squeezed. It's just that unlimited downside, investor euphoria on social networking, and volatility makes me too nervous to do it.
If the unlimited downside scares you, why not buy put options?
It's August 1995 again! http://en.wikipedia.org/wiki/Netscape#Early_years