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Are you LinkedIN?

-Tim Dyer

Equity markets are adding another name to their network today with the IPO of  internet sensation LinkedIN (ticker: LNKD).  The deal was originally priced at $32 – $35, by lead banker Morgan Stanley, but quickly jumped to $45.  This raised approximately $353 million from investors for the company.   On this first day of trading the shares opened at $83 and are now trading well over $100 a share.  Investors burned in the past internet bubble seemed to have dismissed the valuation concerns as the IPO values LKND at a whopping $4.25 billion. Not bad for a company with only $243 million in revenues and net profits of $3.4 million in 2010.  I guess you can’t discount the company’s 100 million subscribers, far less than Facebook’s 500 million but noteworthy none the less.  Todays public offering has the feeling of euphoria that Google (GOOG) had on its IPO in Aug 2004. Google originally priced at $85 and soared to over $711 in 3 years. The shares are currently trading in the $530 area for an almost 400% gain since the IPO. We will never know if shares of LNKD will be as successful as GOOG but for those that believe in the power of social media it may be time to get ….LinkedIN.

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