LNKD IPO opens huge at $83 • Hacker News Board

Re: LNKD IPO opens huge at $83

#71

Post by dirtyaura » Thu, May 19, 2011, 4:24 PM UTC

jordanb wrote: post #38

Aloisius wrote: post #36

Earlier quoted context omitted.

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?

Might LinkedIn's business be counter-cyclical? People are going to be 'networking' most intensely when they don't have a job or are worried about their current job. If there are fewer people looking for a job and those people get pulled out of the market more quickly, there's less money to be made from them.

LinkedIn is not likely to make money out of job seekers. Their fastest growing income stream is LinkedIn Corporation Solutions. I'd assume that headhunting is harder during good times, thus I think they are more cyclical than counter-cyclical.

Re: LNKD IPO opens huge at $83

#72

Post by jrwoodruff » Thu, May 19, 2011, 4:26 PM UTC

Aloisius wrote: post #60

dstein wrote: post #52

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.

How many people have the ability to pump up a stock several hundred million dollars? These are most likely hedge funds investing.

Read "The Wolf on Wallstreet." Don't know if it's still happening that way, but the author made it sound like "pump and dump" was (is?) a pretty common game.

Re: LNKD IPO opens huge at $83

#73

Post by brosephius » Thu, May 19, 2011, 4:26 PM UTC

dstein wrote: post #68

brosephius wrote: post #59

Earlier quoted context omitted.

there's a lockup period, nobody is selling their pre-IPO shares now.

That would prevent insiders and common shareholders from selling their shares, but it would in no way prevent an investment bank from unloading their shares through some sort of intermediary.

you mean the underwriters of the IPO are not subject to a lockup period? that seems unusual, but I'd believe it I guess.

Re: LNKD IPO opens huge at $83

#74

Post by pbreit » Thu, May 19, 2011, 4:27 PM UTC

blantonl wrote: post #5

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.

LinkedIn is not even trying to make net income so it's erroneous to perform much analysis on that number. Yes, it's a lofty number but LinkedIn has been around for quite some time and has very solid and very rapidly growing financials.

Re: LNKD IPO opens huge at $83

#75

Post by tybris » Thu, May 19, 2011, 4:28 PM UTC

dman wrote: post #15

blantonl wrote: post #5

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.

As long as people are going short, banks have incentive to keep the price high and rake in the interest, using it to keep inflating the price. Only when everyone has stopped believing the price will go down and stops short selling, then the banks can no longer inflate the price and will let it go down. See oil for an example.

Welcome to the rigged game.

Re: LNKD IPO opens huge at $83

#76

Post by kmfrk » Thu, May 19, 2011, 4:28 PM UTC

tristanperry wrote: post #25

I was going to type a fairly lengthy comment, but I think I'll just do a one sentence sum-up (and hope I don't get downvoted for it!): This is yet another strong piece of evidence that we're in a bubble.

You should have gone for the long comment.

Re: LNKD IPO opens huge at $83

#77

Post by brosephius » Thu, May 19, 2011, 4:28 PM UTC

dataminer wrote: post #69

brosephius wrote: post #64

Earlier quoted context omitted.

there was higher demand for the shares than anticipated?

The chart at google finance displays the price was $83 on 9:30 when the volume was 0. I can understand the price rising due to higher demand but not the discrepancy in google finance chart when the volume was 0.

that's where it opened. the $45 price is where stock was bought before it started trading publicly; once the stock opened on the nyse it first changed hands at $83.

Re: LNKD IPO opens huge at $83

#78

Post by pbreit » Thu, May 19, 2011, 4:28 PM UTC

jordanb wrote: post #38

Aloisius wrote: post #36

Earlier quoted context omitted.

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?

Might LinkedIn's business be counter-cyclical? People are going to be 'networking' most intensely when they don't have a job or are worried about their current job. If there are fewer people looking for a job and those people get pulled out of the market more quickly, there's less money to be made from them.

No. It's a-cyclical...even better.

Re: LNKD IPO opens huge at $83

#79

Post by dstein » Thu, May 19, 2011, 4:31 PM UTC

brosephius wrote: post #73

dstein wrote: post #68

Earlier quoted context omitted.

That would prevent insiders and common shareholders from selling their shares, but it would in no way prevent an investment bank from unloading their shares through some sort of intermediary.

you mean the underwriters of the IPO are not subject to a lockup period? that seems unusual, but I'd believe it I guess.

They probably are, but what I mean is they could use some 3rd party to short their own shares. We're talking about people that can rob the US government of a trillion dollars in plain sight.

Re: LNKD IPO opens huge at $83

#80

Post by gyardley » Thu, May 19, 2011, 4:31 PM UTC

yoseph wrote: post #3

Round again we go... It's so disappointing to watch... But it's not a bubble if we're able to tell it's a bubble, right?

Why is this disappointing?

If the IPO window's open, it's time to try and climb through it! I couldn't be more excited.