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LinkedIn shares open at $82 in market debut as investors clamor for social networking IPO

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May 19, 2011 – Comments (13)

Wow, I thought that $45/share was expensive.  LinkedIn's exploding stock price reeks of the Dot Com bubble to me.  I guess that it's good to be involved in anything related to social networking right now.  Heck the company isn't even using the funds from the IPO to expand its business, a lot of the money is just going to insiders who want to cash out.

LinkedIn shares open at $82 in market debut as investors clamor for social networking IPO

http://www.washingtonpost.com/business/linkedin-shares-open-at-82-in-market-debut-as-investors-clamor-for-social-networking-ipo/2011/05/19/AFskhA7G_story.html

Deej

13 Comments – Post Your Own

#1) On May 19, 2011 at 11:05 AM, lemoneater (78.14) wrote:

I like LinkedIn, but I've never paid a penny to them. I agree $82 seems very expensive. Time will tell.

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#2) On May 19, 2011 at 11:11 AM, Nunquam (< 20) wrote:

I'm normally not a big proponent of shorting stocks, but today's valuation of LNKD at $85 almost gives me pause for consideration.
Could it really be the dot-com bubble all over again?
Welcome back to 1999!

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#3) On May 19, 2011 at 12:01 PM, swank9 (< 20) wrote:

gentlemen start your red thumbs

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#4) On May 19, 2011 at 1:58 PM, TMFRosetint (98.60) wrote:

I redthumbed this company this morning. Social networking companies are at best extremely overvalued, and at worst a racket for the founders and original capital.

 Every social networking acquisition to date has been a boondoggle for its aquirer, and I don't think putting these things on the public market is going to make much of a difference given how absurdly hard it is to monetize them. I read that even Facebook, the behemoth of them, is barely cash flow positive (relative to its "market" value) at this point. If a company with the most scale in the industry is having trouble turning a substantial profit, the minor companies are pretty much screwed.

I actually think LinkedIn probably has better prospects of sustained profitability given their focus on career networking, but every social network company is so overvalued that I wouldn't touch any of them with a ten foot pole.

If Facebook's value comes down to five billion, maybe we'll talk.

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#5) On May 19, 2011 at 2:48 PM, mikecart1 (98.87) wrote:

This stock will go down as historic.  Never seen so much corruption in my life.  If you got in on the IPO at $45, there is no limit to how much you could have made today.  I hope someone does some researching on this.  Someone should be fired.  Either the ones that set up this IPO or the insiders.  That is like opening Facebook at $1/share knowing that it will hit $50/share at the bell.

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#6) On May 19, 2011 at 3:28 PM, L0RDZ (82.15) wrote:

LORDZ  SHORTED  :)

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#7) On May 19, 2011 at 3:28 PM, JakilaTheHun (99.93) wrote:

My first thought with this IPO was "why would LinkedIn" need more money?  And of course, as you suggested; they don't really.  This IPO is to allow insiders to cash out some of their holdings.

I'm not necessarily down on LinkedIn.  Just think it's dramatically overpriced.  If it had a $500 million market cap instead of a $10+ billion one, I might at least consider it as an investment. 

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#8) On May 19, 2011 at 5:01 PM, TMFDeej (99.32) wrote:

You're absolutely right, Mike.  The system didn't work very well today for the original shareholders who left $50/share on the table when they sold out at $45. The underwriters really mis-priced this one. I know some hedge fund folks who were drooling at the opportunity to ride this one up for a huge one-day profit.

My point here was that as an investor, I like to see the funds from shares that are being issued used to improve the business not to line the insiders' pockets. I don't begrudge anyone making money, but that doesn't mean that I find it to be an attractive investment opportunity.

While I'm tempted to short this one, I have learned the hard way (fortunately in CAPS, not real life) that shortin' ain't easy.  I got clobbered on Newflix, Green Mountain, OpenTable, Salesforce, etc...  I think that I'll just be an interested observer from the sidelines.

Deej

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#9) On May 19, 2011 at 7:02 PM, rexlove (99.46) wrote:

LinkedIn has it's own little ticker box on CNBC in the top left corner. I'd say this stock is in bubble mode.

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#10) On May 20, 2011 at 12:29 AM, ajm101 (31.91) wrote:

Deej, have you taken a shot at a valuation for LNKD?  I came up with $3B.  Agreed, it's too bad the company left so much on the table.

Unrelated, anyone that thinks this was anything like the late 90's bubble either 1) wasn't around or 2) wasn't paying attention.

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#11) On May 20, 2011 at 1:26 AM, awallejr (81.55) wrote:

Ok, riddle me this, are the market makers that stupid to price an $95 stock at $45 or are those buying at $95 pure suckers?

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#12) On May 20, 2011 at 8:28 AM, ChrisGraley (29.75) wrote:

Green thumbed it today.

Before anyone thinks I'm nuts, what will it cost a short seller to short a stock with such little float?

I plan on making a quick trade out of this one. 

Right now the underwriters have all the control. 

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#13) On May 20, 2011 at 6:27 PM, ajm101 (31.91) wrote:

awallejr - it has to be one or the other? :)

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