May 23, 2011

Posted by in Stock Market News | 0 Comments

Stock News

Lets just say that LinkedIn made a lot of “New” friends on Wall Street and in Stock Market News last Thursday, more than doubling in its NYSE debut from a strong IPO and giving a stamp of approval to ALL Social Networking firms abroad.

As the first high-profile social networking company to go public, LinkedIn Corporation Class A (NYSE: LNKD) has heightened expectations of others in the field waiting their turn at-bat in the on-deck circle. They include Facebook, Groupon, Twitter and Zynga.

The beauty about the stock market news here is that it indeed validates that there is demand and provides a data point for other companies that Wall Street expects to go public in the next few years.

After all, LinkedIn Soared Up 110% to $94.50 in its first day of trading after rising as high as $122.75. This values the firm at an excess of $8 billion.

LinkedIn, LNKD’s buzz has been very intense especially after the company raised its price range by $10. LNKD will get about $217 million of the $353 million raised. Shareholders will get the rest.

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Growing Fast due to being Profitable

LinkedIn’s Q1 revenue of $94 million was 110% above a year ago and the fourth straight quarter of modest acceleration. Profit rose 15% to $.23 a share – the fifth straight quarter in the black!

Some information regarding management that many folks may not be familiar with is founder and Chairman Reed Hoffman has a long track record of successful startups under his belt. Reed has a 20% stake. CEO Jeffrey Weiner previously worked at venture capital firms Greylockand Accel Partners while he held executive positions at YAHOO! Inc. (Nasdaq: YHOO) before that.

Mountain View, California based LinkedIn has 102 million subscribers, 3x what it had in December 2008. About 56% are outside the United States. Facebook on the other-hand has more than 600 million users.

Sitting in the middle of the patch is Twitter which is currently carrying approx. 300 million users and provides a trove of information on what users are doing or thinking.

Last but not least, let’s not forget about another new IPO recently, also known to many as ” The Facebook of China” Renren Inc. American Depositary (NYSE: RENN) which operates a social networking Internet platform in China. Its platform enables users to connect and communicate with each other; share information and user-generated content; play online games; listen to music; and shop for deals.

Digging deeper in stock market news is LinkedIn is the 20th technology company to go public in the U.S.this year, raising a combined $2.7 billion, this accordingly to Ipreo, which provides capital markets data and analytic services. That compared with 42 in all of 2010 is quite significant.

Another Technology IPO in the pipeline includes Russian search engine Yandex, which aims to raise over $1billion next week. That could possibly be the biggest Internet IPO since Google Inc. (Nasdaq: GOOG) in 2004!

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Social Media seen as a threat to Google

All this success of LinkedIn’s initial public offering last Thursday launched the Internet into a new ear of social networking that, at its core, could pose a threat to Google/GOOG. It paves the way for high-profile IPO’s of Facebook, Twitter, Groupon and other social networking sites that are collecting massive amounts of personal user information.

With that, these sites over time will likely siphon some advertising away from Google/GOOG and provide search features the search leader can’t match say many analysts. Bottom line is the potential threat to Google/GOOG is in fact real and Google clearly has social networking on its radar as a challenge it needs to meet in the future.

On the flip side, Microsoft Corporation (NasdaqGS: MSFT) quite the contrary, is amongst a company that has done a poor job evolving their businesses to compete in the ever-changing Internet market over the years referring to an advertising standpoint.

At any rate, last weeks stock market news launch of LinkedIn/LNKD has and will continue to open eyes and doors of investment bankers looking forward to succeed, underwrite and bring the next greatest IPO/New Issue in the social networking arena to market for all to participate in…In due time!

 

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