All the signs pointed to a blockbuster IPO for LinkedIn (NYSE:LNKD), as the company is in the red-hot sector of social networking. But this is the first time investors have had a chance to get a piece of a franchise company in the sector.

As a sign of surging demand, LinkedIn boosted the range on the offering to $42-$45 from $32-$35 earlier this week.  But even this was too low — so far in Thursday trading, the shares of the company have jumped as high as $85.  The market value of the company is about $9 billion.

So are there still opportunities for gains in this stock?  Or should investors wait until things calm down?

Let’s take a look at the pros and cons:

Pros

Multiple revenue streams. LinkedIn provides offerings like premium subscriptions, hiring and marketing services. For example, the hiring services business has roughly 4,800 companies, which include 73 of the Fortune 100.   It has proven to be an effective tool for recruiting.

And the growth of LinkedIn’s offerings has been torrid.  From 2009 to 2010, revenue spiked 102% to $243 million and net income came to $15.3 million.

Massive growth opportunity. To remain competitive, people need to leverage their Internet profile.  In fact, the traditional “resume” is becoming less important.  Employers and business partners want something that is much more dynamic.

As a result, the spending for talent acquisition is moving increasingly online.  Keep in mind that last year the total market was $85 billion, according to IDC.  Of that amount, LinkedIn believes its addressable market opportunity is about $25.4 billion.

Attractive demographics. A study from Nielsen shows that LinkedIn’s visitors tend to be decision makers, have college or post graduate degrees and have higher incomes.  No doubt, this makes it much easier to sign up advertisers who are willing to pay premium dollars.

Cons

Governance. LinkedIn is not necessarily shareholder-friendly.  For example, there is a two-class structure.  The larger shareholders, like the co-founders, have Class B shares.  These entitle them to 10 votes for each share.  The Class A shares, on the other hand, have only one vote per share.  Yes, these are the shares IPO investors are getting.

Then there is a staggered board.  This means only a third of the board seats are up for vote each year.  All in all, it makes it more difficult for a takeover of the company.

Competition. While LinkedIn is the dominant player in its space, there are definitely threats.  Companies like Facebook, Google (Nasdaq:GOOG), Microsoft (Nasdaq:MSFT) and Twitter would certainly like to get a piece of the market.  Also, Salesforce.com (NYSE:CRM) is making moves into the space, launching a business social network, called Chatter, and purchased Jigsaw, which allows for user-generated business contacts.

Slowing growth. Interestingly enough, this was a warning in LinkedIn’s prospectus.  The momentum will inevitably level off as the company gets larger.

At the same time, costs are likely to ramp up as well — it’s getting more expensive to hire top-notch engineers.

Verdict

LinkedIn believes that business professionals are more like entrepreneurs and are essentially the “CEOs of their own careers.”  In light of persistently high unemployment, this concept is definitely compelling.  The employment market has likely changed forever.

The good news for LinkedIn is that it is at the center of this major trend, and it won’t be easy for competitors to make a dent in the company’s business.

Yet investors need to be cautious, as IPOs can be extremely volatile.  If anything, you will be competing against some well-heeled traders.

So even though LinkedIn is a great company — and the growth should continue for the long-haul — it is probably better to hold off on the stock.  As I noted in a piece for InvestorPlace on Wednesday, you might want to wait six months until the lock-up period expires, which is when the insiders and employees have a chance to sell their shares.

Tom Taulli’s latest book is “All About Short Selling” and he has an upcoming book called “All About Commodities.”  You can find him at Twitter account @ttaulli.  He does not own a position in any of the stocks named here.