Friday, May 20, 2011

Did the LinkedIn IPO change the game? 

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.


By Anonymous E Hines, at Fri May 20, 08:33:00 AM:

Some folks look at this IPO as a market top indicator.

Eric Hines  

By Blogger TigerHawk, at Fri May 20, 10:14:00 AM:

I heard that theory, but do not buy it. There is never only one hot IPO. They come in waves.  

By Blogger Georgfelis, at Fri May 20, 05:24:00 PM:

and much like waves, they can come crashing down, leaving nothing but wet stunned people saying "What happened?"  

By Blogger Avram Marian - Gabriel ( Graham ), at Sat May 21, 06:42:00 AM:


By Blogger PD Quig, at Sat May 21, 10:31:00 AM:

Yeah, well, this time it's different. Take your eyes off of that 1000+ P/E. That is not the metric you're looking for.  

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