May 24, 2011, 10:58 am EDT
While LinkedIn’s (NYSE:LNKD) IPO surged nearly 100% on its first day of trading last week, the chances are that you didn’t get anywhere near this return. That’s because Wall Street firms allocate these shares to their best clients, which include hedge funds, institutions and super wealthy individuals.
True, you can invest in the after-market, but this can be quite dangerous – LinkedIn shares are already 28% off that first-day high. This has also been the case with other high-fliers like Renren (Nasdaq:RENN) and Boingo (Nasdaq:WIFI).
So are there other ways to get access to hot IPOs? One approach is to invest in exchange traded funds (ETFs) or mutual funds. Read
May 23, 2011, 10:29 am EDT
After a long drought, investors are starting to get IPO fever. Just look at last week’s offering of social networking firm LinkedIn (NYSE:LNKD). The company priced its shares at $45, and on their first day of trading they quickly spiked to a high of $120. On Monday, they were recently off 6% to $87.50 they are trading at about $87.
LinkedIn has a market value of about $9 billion, which comes to 18 times its projected revenue of $500 million — and the price-to-earnings ratio is more than 500.
But if you think that stock is too pricey – and it certainly seems so – here are a few other high-quality companies that have gone public this year: Read
May 18, 2011, 11:13 am EDT
LinkedIn (NYSE:LNKD) is expected to price its initial public offering on Thursday. All in all, it looks like the investor demand is substantial, as the company boosted the per-share price range on the deal to $42-$45 from $32-$35.
LinkedIn doubled its revenue last year – reaching $243.1 million – and the company’s even profitable. The IPO will also give investors a taste of the social-networking market — the LinkedIn website has more than 100 million registered members.
So how can you get shares in the IPO? Here’s a look at some of the options: Read
May 9, 2011, 10:35 am EDT
The leading social network for professionals, LinkedIn, released the pricing details of its eagerly-awaited IPO this morning. The company intends to issue 7.8 million shares (under the proposed ticker LNKD) at a range of $32 to $35. At the mid-point, the valuation would be $3.3 billion.
Yet it’s a good bet that the opening price will be 30% to 40% higher when the shares hit the market — which will probably be in the next week or so.
Founded in 2003, LinkedIn is a pioneer in Web 2.0. The company is a kind of Rolodex for the 21st century, allowing professionals to network over the Internet — without putting up with those goofy family photos and embarassing comments from ex-girlfriends that can abound on other social networking sites like Facebook and Twitter. LinkedIn is meant to be for professionals first, an imporant distinction that makes it unique. Read