3/16/2023 0 Comments Linkedin stock projectionsMost of them are trading below their IPO prices. Wall Street’s embrace of LinkedIn contrasts with the cold response given to other Internet services that have gone public during the past few years. Visitors to LinkedIn’s website also viewed 67 percent more pages than the previous year, an indication that the company’s efforts to add more business news and career tips from top business executives are paying off. The shares surged $11.71, or 9.4 percent, to $135.80 in extended trading after the numbers came out.īesides a 66 percent increase in earnings from the previous year, the latest quarter was highlighted by an influx of 15 million accounts to propel LinkedIn’s total membership beyond 200 million. The run of pleasant surprises is one of the reasons that LinkedIn’s stock has tripled from its initial public offering price of $45. It marked the seventh consecutive quarter since LinkedIn’s May 2011 IPO that the company has pulled that off, to the delight of investors. The results announced Thursday extended LinkedIn’s uninterrupted streak of exceeding analysts’ projections for both earnings and revenue. We were in a recession for the past two years - of course people would turn to a professional job search Web site when jobs were hard to come by.SAN FRANCISCO - Online professional-networking service LinkedIn’s fourth-quarter performance added another line to its sterling resume as a public company. Ian Sigalow, a partner at the venture capital firm Greycroft Partners, said he finds the company “exceptional” and feels confident in the IPO, citing its growth over the past two years as one reason. “Who still uses it? Why does it keep sending me e-mails?” “Really? They have new users?” a colleague wrote in a note to me. Some have raised the specter of a rising “social media bubble,” suggesting the high values placed on companies like LinkedIn are too high. But LinkedIn? It’s always struck me as being useful only when you don’t have a job. Google would be a huge IPO, even back in 2004, because, well, we all use Google all of the time. I leave most business questions to my far more qualified colleagues in our business section, but I have to admit the deal is puzzling. Some analysts have expressed concern that the high IPO does not match the company’s true value, given its size and projected revenues. But the question is whether LinkedIn can accelerate this revenue growth. The increase in sales came from the company’s hiring solutions, a paid offering which helps recruiters search for professionals and list jobs on the site. Net income increased to $2.08 million, from $1.81 million in Q1 2010. As we wrote yesterday, LinkedIn is growing revenue-the company just reported that Q1 revenue in 2011 was up 110 percent to $93.9 million. The professional social network is set to begin trading on the New York Stock Exchange this Thursday, under the symbol LNKD.Ĭlearly, LinkedIn is upping the price of the offering because its expects that Wall Street will respond to this increase positively. The funds could also be used for acquisitions or investments in complimentary technologies. LinkedIn says it will use these funds from the offering for general corporate purposes, including working capital, sales and marketing activities, general and administrative matters and capital expenditures. LinkedIn is still offering a total of 7,840,000 shares and is looking to raise as much as $406 million in the offering. LinkedIn had originally set their IPO between $32 to $35 per share, but raised their initial target in the face of high demand from investors. The company’s service helps businesses find new employees and promotes networking among the more than 102 million people that have set up profiles.
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