LinkedIn, Pandora Stocks Are Perking Up!
At its highest price on the day of its IPO last may, LinkedIn’s market value was an eye popping $11.6 billion — or about 30 times the annualized pace of its revenue this year. By comparison, Apple is trading at less than 5 times the estimates of its annual revenue.
Pandora, which has a business model that seems to render it nearly incapable of turning a profit, had broken below the price of its IPO weeks ago. But after selling its debut shares at $16 each, and then seeing shares drop as low as $12.16 in recent days, Pandora is today in the $15 range.
To be sure, the share prices of Pandora and LinkedIn have been on roller-coaster rides, made more volatile by a very small number of shares out there for investors to buy (and sell). It’s entirely possible that anytime the overall market starts to show small doses of optimism, any one with short positions in these stocks is getting squeezed, putting some loft into stock prices.
But for backers of LinkedIn and Pandora, they’ll take the stock-price gains.
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