LinkedIn has defied the odds!

Ken Sena, an analyst with Evercore Partners. said that despite LinkedIn's (LNKD) influx of insider shares on the market, ''there are some strong believers in the overall growth story here''.

At the outset, LinkedIn sold a small number of shares - less than 10 per cent of the total. This dearth of stock helped stoke initial demand and buffer the stock price.

On their first day of trading, LinkedIn shares jumped to $US94.25 each, from $US45.

Other technology start-ups have since followed LinkedIn's example. This month, Groupon sold 35 million shares in its initial public offering, roughly 5 per cent of the overall pool. The three-year-old daily-deals site sold its shares for $US20 but they had risen to $US26.11 by the close on the first day.

But a sudden infusion of shares into the market can dampen investor interest. In July, shares of web publishing company Demand Media dropped by more than 7 per cent after its insiders were allowed to sell their stakes.

When Google's stock lock-up ended in 2004, the company's share price dropped by 6.7 per cent.

i ASK “IS GOOGLE THE ONLY EXCEPTION ALLOWED, OR WILL LINKEDIN (LNKD) STEP UP AS THE NEW BIG BROTHER IN TOWN?”

LinkedIn has defied the odds. Attributing factor may be the 100 million subscribers.


In Comparison to Google, LinkedIn comes in with a price tag of $45.00 and 94 million shares, sporting 100 million users or (1 new user per second) as the CEO reports. The opportunity for growth is phenomenal! Debunking every negative rumor LinkedIn has remained stable. Investors are hungry for stocks they can understand and relate to and Social Media connects the investors with each other on a very personal yet professional level. Professional’s trained in evaluating the value of stocks seem to remain in a cloud of confusion as to how to evaluate the Social Media Stock Market.