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LinkedIn valued at nearly $9billion

LinkedIn valued at nearly $9billion

The valuation equates to a value of $7million per employee.

Social networking site LinkedIn is officially worth nearly $9billion after its first day of trading on the stock market. The site has almost trebled in value after being valued at just over $3billion only a few days ago.

LinkedIn had its debut on the stock market on Thursday this week, and it's now had the fifth largest growth in a single day since the 1990s dotcom bubble era.

Largely used by businesses, LinkedIn shares finished their debut of public trading at 109 per cent of their original price, closing at $94.25 compared to $45.

During the day, their value rose by as much as 171 per cent. LinkedIn staff are understandably delighted and, according to Reuters, one employee said: 'I got here at 6am. We've been celebrating since then.'

The jump in share prices has raised some concerns among financial professionals, though. 'Based on what I know, it seems like investors are a little overly enthusiastic,' chief investment officer at Harris Private Bank in Chicago, Jack Albin, told the site. 'It seems to bring back memories of the tech bubble.'

LinkedIn started as one man in his bedroom in 2003, but it now has over 100 million registered users and is one of the few foreign social networking sites allowed to operate in China. The company employs 1,288 staff and, based on Thursday's valuations, its market value is now almost $7million per employee.

Is LinkedIn currently over-valued? Would you buy shares in the company at the current price? Tell us what you think about LinkedIn in the forums.

14 Comments

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Tokukachi 20th May 2011, 16:15 Quote
Another example of the ridiculous "web 2.0" bubble, its going to burst soon, mark my words :)
Hustler 20th May 2011, 16:28 Quote
Looking at the pictures on the TV yesterday at all the moronic dealers 'whooping and cheering' at the share price rising, you really got a sense of deja vu.

..people will just go on making the same mistakes as before...:(, all it takes is time to pass and memories to fade, and the greed to kick in once more, and the crash to come.

Depressing really....
leveller 20th May 2011, 16:36 Quote
Agree with bursting-bubble coming. Just hope pension funds keep their snouts out.
Zinfandel 20th May 2011, 18:03 Quote
What a complete joke this is... They made less than $20m last year and are slated for a loss... Where on earth do they think revenue that justifies a $9bn valuation comes from?

Idiots.
pendragon 20th May 2011, 18:50 Quote
Quote:
The site has almost trebled in value after being valued at just over $3billion only a few days ago.
I assume you mean 'trippled'? .. unless this is some other Britishism that I'm unaware of ^_^
XXAOSICXX 20th May 2011, 19:47 Quote
Quote:
Originally Posted by pendragon
Quote:
The site has almost trebled in value after being valued at just over $3billion only a few days ago.
I assume you mean 'trippled'? .. unless this is some other Britishism that I'm unaware of ^_^

Trebled is the correct word, in English. http://www.merriam-webster.com/dictionary/trebled

Tripled (only one 'p') means the same thing.
FelixTech 20th May 2011, 19:50 Quote
Quote:
Originally Posted by pendragon
Quote:
The site has almost trebled in value after being valued at just over $3billion only a few days ago.
I assume you mean 'trippled'? .. unless this is some other Britishism that I'm unaware of ^_^

I assume you mean 'tripled'? Trebled is an equally valid expression - just look it up :P

LinkedIn is an oddball in that business/investor types are it's main user base, and as such they are the most likely to be over-enthusiastic. At the same time it is the investors themselves using the website that gives it its value!
ssj12 21st May 2011, 06:32 Quote
Quote:
Originally Posted by Neat69
Another example of the ridiculous "web 2.0" bubble, its going to burst soon, mark my words :)

linked in is actually a site that worked its way to fame, I dont remember it getting any real media attention when it was launched or made by some college student that made it popular around a university.
Whirly 21st May 2011, 11:00 Quote
Sounds like a case of people desperate to get in on the success of facebook by buying into the first available alternative.

How often has the internet shown that a desperately fashionable site can die very quickly as soon as the next big (shiny) thing comes? What happened to blogging? Or Friends Reuinited? There was a time when both were the height of fashion. Now they are almost niche.

If you ask me the current social networking sites are very over-valued.
fodder 21st May 2011, 11:12 Quote
LInkedin is a different animal to the usual 'social' network sites. Yes, it has a facebook-esque appearance and feel to it, but the users are not there to have a huge friends list for social reasons or to show your latest party antics to the world.

It's primary function is to network business and professional people together and provide a forum for the interchange of ideas and business. Linking to people on it is pretty well policed, you can't just link to anyone without showing an existing or previous connection.

You don't get all the business to public crap either. The only 'spam' you may get is from other businesses providing a service specific to your business or profession. It is rare and tbh not always unwelcome, in business ideas and options are always welcome.
Gtek 21st May 2011, 13:29 Quote
short, at the end of Q4 :P
Krayzie_B.o.n.e. 21st May 2011, 22:10 Quote
Maybe has a high stock value due to it's freedom to operate in China. China right now is the best place to invest as it's growing super fast. So a business specific "kinda like Facebook" site sounds good.

in 5 years it will sink like the Titanic. I suggest the owner just sell it now and live happily ever after.
sotu1 23rd May 2011, 09:25 Quote
A friend of mine is working there. I'm sure he's very happy!
leveller 23rd May 2011, 18:13 Quote
People starting to cash-in apparently. 8.68% down. Over $320milion dropped off it's value.
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