May 20, 2011 Linkedin Soars on IPO
Linkedin a major social network site opened on an Initial Public Offering (IPO) yesterday opening on the NYSE at an initial price of $ 45.00 a share and closed at almost double reaching a high of $ 107 a share. LNKD the symbol for Linkedin closed Friday at 93.90 a share.
At the same time Apple shares went lower by approximately 1 percent following the news of an explosion at a Foxconn China plant, which may impact iPad 2 production.
The big gains by Linkedin may be short lived by reaching a market capitalization of about 9 billion dollars experts indicated yesterday. Some stock brokers are now recommending shorting the stock because of too high an evaluation price. However that may also be difficult since in order to short the stock, investors have to borrow the stock and then sell it. The ramifications of shorting may prove to be a hard sell to investors but the options market may take a run at Linkedin next week.
The Chief Executive Jeffrey Weiner indicated they are planning long term goals and concentrating on getting the fundamentals right at this time.
Speculators say this is reminding them of the 1990′s and the dot com bubble and blow up and are also being cautious not to over-speculate.