The company, founded by Reid Hoffman (pictured above), is a business network that’s designed to help professionals connect with other potential business contacts and get a “warm introduction” through people in their network. This would account for 0.73 of the index. The MSCI would include 222 A-share mainland large-cap stocks. LinkedIn is based in Mountain View, Calif., and has more than 1,000 employees. So, when additions or alterations are made to this index, that’s big news. Facebook, for example, was valued at $50 billion after its most recent round of funding - though it is trading at a higher price than that on secondary markets. That company turned out to be a flop on public trading markets and has fallen below the IPO price of $14 to $13.75 it saw earlier this month.Ī number of highly successful Web 2.0 companies like Facebook and Zynga - and LinkedIn - have seen ballooning valuations as investors have rushed to snatch up as many shares as possible ahead of what could be some of the most high-profile tech IPOs to date. There’s also the chance that share prices of LinkedIn could turn south over the next several days, like shares of Chinese social networking company RenRen. In 2010, Hoffman joined venture firm Greylock, managing a seed fund that has invested in Groupon, Dropbox, Pandora, Tumblr, Shopkick, and. Stock Movers 4:00 PM EST 2/24/23 Gainers Decliners Actives Includes common stocks, ADRs and REITs listed on NYSE, Nasdaq or NYSE American with a prior day close of 2 a share or higher and. LinkedIn’s closing share price and valuation mean the company is worth somewhere north of 36 times its revenue for 2010, which was around $243 million. LinkedIn now lays claim to more than 400 million members. The company had its IPO in 2011 and soared more than 100 on its first day of trading, after initially pricing its shares at 45 under the stock ticker LNKD. The company’s stunning debut on the stock market could end up creating additional chatter about whether several Web 2.0 companies are overvalued. The shares were trading at $94.24 most recently in extended trading. The company also saw a quick decline in its share prices in the ten minutes before the markets closed, dropping as low as $91 before leveling off at around $94 minutes before the final bell. LinkedIn’s shares hovered at around $103 for most of the afternoon before finally dipping down below that level of support toward the end of daytime trading. LinkedIn’s valuation is the first official record of the hyper-valuations many Web 2.0 companies like Twitter and Facebook have seen in recent years. Shares of LinkedIn traded as high as $122 earlier today, giving the company an implied valuation as high as $11 billion. LinkedIn forecast full-year revenue of $3.60-$3.65 billion, missing the average analyst estimate of $3.91 billion, according to Thomson Reuters I/B/E/S.That means LinkedIn now has a market cap of around $9 billion - well above the valuation of $4 billion it claimed when it priced the shares of its initial public offering between $42 and $45. Their median target dropped 34 percent to $188, according to Reuters data. “With a lower growth profile, we believe that LinkedIn should not enjoy the premium multiple it has grown accustomed to,” Mizuho Securities USA Inc analysts wrote in a note.Īt least 36 brokerages cut their price targets, with Pacific Crest halving its target to $190. The rout in the stock cost LinkedIn chairman Reid Hoffman about $1.2 billion based on his 11.1 percent stake in the company he co-founded, according to Reuters calculations.Īt least nine brokerages downgraded the stock to “hold” from “buy”, saying the company’s lofty valuation was no longer justified. The stock plunged as much as 46.5 percent to a more than three-year low of $102.89, registering its sharpest decline since the company’s high-profile public listing in 2011. The logo for LinkedIn Corporation, a social networking website for people in professional occupations, is pictured in Mountain View, California February 6, 2013. LinkedIn Case Study Challenge Wall Street Price Targets for LinkedIn What the Quants Are Saying What the Charts Are Saying About Demand and Supply Your.
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