LinkedIn Starts Strong For Second Straight Day

The largest networking professional site, LinkedIn, rose to new heights on its second straight day in trading by doubling the output shown yesterday. This gives stockholders a new sight on how firm the foundation is for the company after being backed by public offerings. This near perfect outing for the company lets the economy see that social media is still very much in demand.

Stocks rose 14% already this morning to a $107 total on the NYSE which adds to a very bountiful 109% surge before the final bell on Wall Street. for all you that want to participate in the company’s success, the ticker is LNKD.

The company’s market value as of today is a little over $10 billion which is about 27% of its total revenue this year. Facebook, which is the world’s largest social media network, would be valued at $107 billion if you use the same figures. all of this gives investors of newer companies a sigh of relief knowing that you do not have to go public right away to make money. This kind of venturing opens up brighter prospects in the capital industry.

“We knew this was going to be a super hot IPO and gives us further evidence of the enormous appetite for this wave of next- generation Internet companies,” Paul Bard, director of research at Renaissance Capital LLC, said in an interview with Bloomberg Television. “You are going to see more companies go public that will try to capitalize on this wave of interest.”

The debut of the company on the NYSE yesterday is reflecting a kind of comeback for venture capitalists. Companies that are backed in the U.S. raised $1.38 billion in the first quarter which is a 47% increase from a year ago. In late 2008, there were zero IPO’s that were venture-backed.

However, there is growing concern that the technology shares could be overvalued as most investors are trying to forget the 2007-2009 collapse of the market. Former Secretary of the Treasury Lawrence Summers stated in Shanghai earlier today that “Who could have imagined that the concern with respect to any American financial asset, just two years after the crisis, would be a bubble?” Summers, now a professor at Harvard University, said at a conference today in Shanghai. “Yet that concern is increasingly raised with respect to American technology, with respect to certain other American assets.”

The problem lies with most thinking that LinkedIn will not be able to keep this pace up. CIO of LinkedIn Dan Veru said that “At $100 a share, we would not be buyers. It far exceeded our expectations for what it would do in the first day of trading. It would be amazing to me, with the revenue base it has, if it maintains a $10 billion market cap.”

Even though the company’s performance is one of the best concerning stocks in the dot-com era, he wants people to know that every business cools down. Yahoo! Inc jumped 154% during its first day of trading way back in 1996. A year earlier Netscape double its debut.

“The valuation for LinkedIn is rich,” said Michael Moe, chief investment officer of GSV Capital Management in Woodside, California, in a televised interview with Bloomberg West. “To earn the valuation, it has to continue to grow very, very fast.”

<a href="http://gamutnews.com/gap-downs-cool-ctsh-emis-hdvy-ievm/5112/tag:news.google.com,2005:cluster=http://gamutnews.com/gap-downs-cool-ctsh-emis-hdvy-ievm/5112/Wed, 04 May 2011 08:53:13 GMT 00:00″>LinkedIn Starts Strong For Second Straight Day

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