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Massive LinkedIn IPO Raises Dotcom Bubble Concerns

Posted by Soulskill on from the money-for-nothing dept.

The Installer writes with news of yesterday's stock offering from LinkedIn, which shocked investors by closing at more than double the initial price. "Buyers crowded the floor of the New York Stock Exchange, and financial news networks flashed LinkedIn's stock price urgently all day. By the closing bell, the company had a market value of $9 billion, the highest for any Internet company since Google had its initial public offering seven years ago. Millionaires and even one billionaire were made, at least on paper. The stock, issued at $45, went as high as $122.70 just before noon and closed at $94.25 on a trading volume of 30 million shares." That price values the company at over 30 times its 2010 revenue, leading to speculation that this is either evidence of the second dotcom bubble (a possibility we discussed in February) or a "watershed moment for social media." Many experts are questioning the value of LinkedIn, while others are claiming intentional market manipulation.

6 of 169 comments (clear)

  1. LinkedIn by bleble · · Score: 3, Funny

    LinkedIn is filled with professionals. That isn't your everyday farmville-playing soccer moms or pirates who just have free content and who have little market value. These are people who's value is highly over that and they can be offered professional, high paying services and advertising. This is very valuable user base.

    1. Re:LinkedIn by jo42 · · Score: 4, Funny

      I agree. Though, for some reason, it seems that almost every CV/Resume on LinkedIn should end with "And the sun shines out my butt."

    2. Re:LinkedIn by Spectre · · Score: 4, Funny

      Everyone on LinkedIn isn't a professional ... they're salespeople, selling themselves ...

      Whether actually a salesman, attorney, real estate agent, consultant, or whatever ... it's just an advertisement for that person and their services.

      Would you want to buy a list of people that are willing to publicly sell themselves?

      There are terms for that, I think "Streetwalker" is one of the more polite ones.

      Wait, I can buy a list of streetwalker's names, numbers, and services ... holy crap, you're right, it's a gold mine!

      --
      "Flame away, I wear asbestos underwear"
    3. Re:LinkedIn by tool462 · · Score: 3, Funny

      If that is a listed skill on their resume, I WILL ask them to demonstrate during the interview.

  2. Just give me one year... by Anonymous Coward · · Score: 3, Funny

    I really hope the bubble doesn't burst before I try to cash in on my big idea.

  3. I belive 30 Rock summed up my view quite nicely. by characterZer0 · · Score: 5, Funny

    "He's on LinkedIn, Lemon. He might as well be dead." -Jack Donaghy

    --
    Go green: turn off your refrigerator.