Thursday, May 19, 2011

LinkedIn get Listed on NYSE, Stock doubled on debut

LinkedIn Corp.'s initial public offering on Wednesday night was priced at $45 per share, at the high end of the company's initial target. The company raised $353 million in an IPO that valued it at $4.3 billion. That's the largest valuation for a U.S. Internet company since Google went public in 2004.

LinkedIn's stock more than doubled in its market debut on Thursday because of huge investor demand for the first major U.S. social networking company to go public, valuaing it at a market cap of more than $9 billion.

Over the past 12 months, LinkedIn has made about 7 cents per share. At $100 investors are paying more than thousand times its last year earning per share, which resembles the days of tech bubble of 2000.

LinkedIn made $94 million in the first quarter of 2011, and its net income was $15.4 million in 2010. Thursday’s IPO made LinkedIn chief executive Reid Hoffman a billionare. His personal stake is now valued at $1.6 billion.

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