LinkedIn’s doubled stock price after its IPO on Thursday has many wondering if this could be the start of another tech bubble. LinkedIn initially offered 7.84 million shares at $45 each. Within minutes, the shares doubled in price and eventually peaked at $122.70 each. The price lingered around $100 on Friday. LinkedIn reportedly has the highest price-revenue ratio of any stock anywhere. LinkedIn’s market value is being reported as around $9.5 billion, which is roughly 39 times last year’s sales. On the secondary market, LinkedIn has been valued as high as $80 billion.
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LinkedIn IPO Paints Rosy Picture for Other Social Nets
Posted by: Rob Spiegel May 20, 2011 12:17 PMLinkedIn’s doubled stock price after its IPO on Thursday has many wondering if this could be the start of another tech bubble. LinkedIn initially offered 7.84 million shares at $45 each. Within minutes, the shares doubled in price and eventually peaked at $122.70 each. The price lingered around $100 on Friday. LinkedIn reportedly has the highest price-revenue ratio of any stock anywhere. LinkedIn’s market value is being reported as around $9.5 billion, which is roughly 39 times last year’s sales. On the secondary market, LinkedIn has been valued as high as $80 billion.