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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.
Might be a nice time to short, that is if there is someone willing to be on the other side of that trade.
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You couldn't have actually put a lot of money on it (unless you bet one of your friends, or in the unlikely case that you or your family member works for LinkedIn). The trick with IPOs is that even if you had the shares earlier, you couldn't sell them today because of the six month lockup period. The only way for you to get in would be right now at ~$80.
that is true if you want to directly purchase shares, but there were market makers and other outlets offering CFD's and derivatives at just above the list price. judging by the volume (9M traded so far, which is more than what was listed) there seems to be a lot of that going on
do you have an references for that? were these offerings available to small retail investors?
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The current valuation is ~$8.5 billion, wikipedia puts them at ~100 million users. That works out to be ~$85/user.
The current valuation has jumped about 15-25% (from 88 to 110 per share) in the 10 minutes I've been watching it. 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.
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.
>>*"they just raised $660 million dollars out of the gate in this IPO" No, that's not how it works. LinkedIn priced their IPO at $45/share, meaning they raised $352.8 million. The share price right now has no impact on how much money they raised.
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>>*"they just raised $660 million dollars out of the gate in this IPO" No, that's not how it works. LinkedIn priced their IPO at $45/share, meaning they raised $352.8 million. The share price right now has no impact on how much money they raised.
How much of that goes to crystal trophies and high-fiving brokers that made the deal happen?
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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?
I'll tell you what happens. Recruiters and third parties sign up in droves for the sole purpose to spam the userbase, which ultimately drives members away from the site. LinkedIn earned their 100 million users by providing a professional networking platform where the users could choose who they network with. When the userbase has less of a choice regarding who contacts them, they'll abandon linkedIn as fast as a teen…
Really the only people making any money here are the underwriter and venture capitalists who took this company public - the guys who pumped up and are now dumping these shares. While they're high fiving eachother with a job well done it's setting up the exact same crash that happened last time.
Really the only people making any money here are the underwriter and venture capitalists who took this company public - the guys who pumped up and are now dumping these shares. While they're high fiving eachother with a job well done it's setting up the exact same crash that happened last time.