Friday, May 20, 2011
Some few of you may have noticed that the initial public offering of shares in LinkedIn, the tediously nudgy social-networking site, partied like it was 1999. The deal priced at the top of the range and then promptly doubled and then some more.
My guess is that this will kick off a new round of IPOs, starting in social media and spreading quickly to anything that can be spun in to a social media story. ("Our chain of exciting Bolivian-style family casual dining restaurants in the revolutionary tradition of Che Guevara has grown so quickly because of its early and aggressive use of social media advertising.") Well, good. Bull markets are fun, until they are not.
Paul Kedrosky agrees, by the way, and has a few other interesting observations.