LinkedIn Stock IPO Sees Its Price More Than Double

It seems that Facebook may not be the only hottest social network company around. Professional social network LinkedIn may also be considered as one in terms of investment. It recently conducted a initial Public Offering to open the company’s doors to public investors. Due to the demand for its shares, LinkedIn saw its share price more than doubled after the first trading day.

LinkedIn, a social network that caters to working professionals and job seekers, may be showing just how in demand social network companies may look to investors. During the IPO last Wednesday, LinkedIn was priced at $45 per share. It began trading on the New York Stock Exchange on Thursday under the ticker symbol LNKD.

At the opening of trading LinkedIn share prices rose to $83 and even to $90 soon afterward. Share prices reached a high of $122.70 per share in late morning trades and saw it close for the day at $94.25 per share. LinkedIn stood to raise more than $350 million in its IPO, making it one of the largest IPO’s among tech companies since Google, who did it last 2004. It currently puts the value of the company at around $9 billion.

This may be quite an opportunity for LinkedIn, that only was able to report profits a year ago and another one in 2006 since its inception last 2003. Other than that, LinkedIn was seen “in the red” in the prior years. The demand surge may also be a cause of concern for other investors since it may be seen as another tech bubble that may burst at any time. Another point of concern is that LinkedIn valued itself at just $2.32 per share.Whether the rise in share prices on its first trading day can be maintained over time still remains to be seen.

Source: CNN Money

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