As the usage of social media websites have shot up tremendously, the business paradigms are redefining the way it works. Among the years, the valuation of these networking sites has not only increased manifold but also led to evolution of multiple earning opportunities. This has led to excitement in the market and propelled a positive signal in the market.
There is enough buzz in the market about the recently launched LinkedIn IPO in the market. Although the loom of the yesteryears Dotcom Bubble still haunts investors, the IPO is attracting remarkable interest from its investors. In the first day LinkedIn had priced its IPO at $45 per share, giving the company a valuation of $4.5 billion! And at the end of the day, the stock had soared 109% to $94.5 and the final worth stood to humongous $8.9 billion.
The earnings of LinkedIn is primarily from its advertisements, subscriptions and the hiring tools that it provides to the recruiters. This is fueled by the large member base of around 100 million people.
LI would be the latest internet startup to go public this year. And assessing the response it has received, I’m sure will set a path for other companies such as Facebook, Twitter to pull up their own IPOs. Currently Facebook (which is world’s largest social-networking site) is valued at $79.4 billion (as evaluated at www.sharepost.com) and Twitter (famous micro-blogging site) is valued at $7.2 billion.
The IPO has flagged off both positive and negative thoughts in the market. While the heightened valuation has instated confidence among the web startups, this growth is also seen to be inflated and lots of analysts are skeptical about the future. But one thing is for sure – keeping the current growth/business model in mind, the IPO is surely rising to its potential.
image source: http://economictimes.indiatimes.com/markets/global-markets/linkedins-market-debut-heralds-the-next-dot-com-boom-20/articleshow/8476166.cms
1 comments:
Interesting!!
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