Tuesday, August 16, 2011

Linked In Provides Job Opportunity to Millions! • PART SEVEN

The Social Media Stock Market 
– Part Seven – 
LinkedIn IPO, A Week in Review – Linked In Provides Job Opportunity to Millions

By Steven Friley


LinkedIn IPO Rises, then Falls – But Through it All, this much remains

“They had a moment in time that will transform investing”

When  I began watching LinkedIn I felt a sense of excitement as the IPO rose above and beyond any expectations of investors or gurus. Day #1 – LinkedIn Underwriters, et. al, sold their shares out for $45 a share before the trading day was closed. One question we asked was “Why would they sell off investor stocks in a HOT IPO so soon? Perhaps there was just a general CLOUD of misunderstanding surrounding the Social Media Stock Market craze, perhaps it was difficult to determine the effect that the Law of Numbers would have on the stock’s valuation. Whatever the reason, LinkedIn soared above the initial offering of $45.00 to almost $123. There were no visible reasons other than a hunger of the public for Social Media Stocks.

-But

Because LinkedIn remained stable, the critics began the negative campaign and cry of “the next bubble”, LinkedIn remain strong. LinkedIn is about serving the needs of members and has absolute rate of 1 member per second creates value for members and focuses on the people.

-So

Investors tried to short the stock but couldn’t drive the price below $90.00 a share, LinkedIn remained stable and almost double their IPO initial cost of $45.oo.

-then

Options trading opened on Friday, May 27th. With shorts and options the price still remains today, May 31, 2011, $82 a share which is higher than the $45 we saw last week. The underlying variable in evaluating the success of a social media stock, is The Social Network. Millions of voices that are forming a single heartbeat for change. With news of Zynga and Facebook entering the sock circuit, how will this effect LinkedIn? Who knows. but the facts remain that (1) Social Media has millions of followers through various avenues (2) Of those followers, many are very pleased with the success in life and career they have enjoyed.

Why did LinkedIn Underwriters cause LinkedIn to LOSE $130 Million?


Underwriters put money in the pockets a sweet group of people to the detriment of LinkedIn. Underwriters sold out so soon that the investors didn’t even have time to enjoy the benefits. The reason for low intro IPO seems to be “A General Doubt” about the reality of Silicon Valley Offerings”. I would think we should begin to review the power of Social Media to see just why Silicon Valley will continue to support a new wave of investors, consumers and business owners. Linked In and Monster???


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