May 24, 2011, 10:58 am EST
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 EST
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 EST
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
Apr 14, 2011, 11:49 am EST
Founded in 2000, Zipcar (NYSE:ZIP) is now the world’s largest car-sharing service, with more than 560,000 members (called Zipsters). Here’s how the service works: A Zipster will use the Web, iPhone or traditional phone to locate a car and use a Zipcard to unlock it. He or she will then be charged only for the time it is used. It’s an innovative model and would not be possible but for the cutting-edge technologies that have emerged over the past decade.
As a testament to its success, the company has just pulled off an IPO, Zipcar issuing 9.7 million shares late Wednesday at $18 each, which was above the $14-$16 expected range. And so far in Thursday’s trading, the stock price is up a sizzling 61%.
But perhaps the action is too frothy, or is there still value for investors? Here’s a look at the pros and cons: Read
Mar 30, 2011, 10:54 am EST
The 2011 IPO of Qihoo comes straight from the playbook of the dot-com 1990s. Qihoo 360 (NYSE: QIHU), which is a Chinese provider of antivirus software, originally set the price range of its deal at $10.50 to $12.50. Then Qihoo increased it to $13.50 to $14.50. With demand at 40 times the amount being raised, the final price of the QIHU stock IPO came to $14.50.
Well, QIHU investors thought that price still too low. So far in today’s trading, the shares of Qihoo 360 are trading at $29. With 175 million shares outstanding, the market value of the company is a whopping $5 billion overnight.
Why all the excitement? Well, Qihoo 360 is the #3 Internet company in China, with a user base of 339 million. That’s an 85.8% penetration rate. Read