AfterDawn: News

LinkedIn IPO jumps as high as 170 percent

LinkedIn, the professional social networking site, has seen its stock jump as high as 170 percent in its first day of trading, seeing a peak of $122.70 per share.

The company's IPO price was $45 per share and the stock opened at over $80 per share at 9:30 this morning.



As of writing, the stock is trading at $102, good for 125 percent gain.

The company raised $353 million in the deal, selling 8 percent of its shares. The company was valued at $4.3 billion, which was clearly a huge undersell by the underwriting banks.

If anything is clear from today's action is that a social networking bubble has just begun, with Facebook, Groupon, Zynga and other companies expected to IPO in the next couple of years.

LinkedIn currently has 102 million users, slowing revenue growth from ads and subscriptions, and has never turned a profit.

Written by: Andre Yoskowitz @ 19 May 2011 13:47

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• 4 comments

• ROMaster2

  Looks like time for a stock split.

  19.5.2011 16:51 #1

• moondad

  Holy $hit here we go again, no profit and stock selling at 125 percent gain. Didn't we bust that bubble about 10 years ago?
  

  19.5.2011 23:22 #2

• Mr-Movies

  People are truly dumb!
  

  21.5.2011 11:31 #3

• hearme0

  How is this possible???????
  
  I have tried LinkedIN and still am a member but HATE it. It's never done anything for me ever, connections for most are useless and only those that are in the "root" of a connection (those throwing out invites left and right like recruiters) are somewhat benefitted.
  
  LinkedIN is by far the second most useless system in the world, next to Twitter.

  23.5.2011 10:29 #4