Andre Yoskowitz
19 May 2011 13:47
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.