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LinkedIn makes big IPO connection

Friday, May 20, 2011 - 01:43

May 19 - Shares of LinkedIn soared as high as $121 in their debut, more than double the professional social networking website's IPO price, in a sign of investors' hearty appetite for social media stocks. Conway G. Gittens reports.

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Cheers and applause marked the opening trade as LinkedIn makes a very successful debut on the New York Stock Exchange. Excitement on the trading floor was palpable as the stock opened at $83 a share, quickly topping $100. That's more than double the $45 a share set in the initial public offering late Wednesday. LinkedIn raised nearly $353 million, valuing the company at more than $4 billion. But frenzy over the professional social media website immediately drew comparisons to the dot-com bubble, causing concern investors are once again overlooking one key metric - profits. In an interview on CNBC LinkedIn CEO Jeff Weiner tried to address skepticism. SOUNDBITE: JEFF WEINER, LINKEDIN CEO (ENGLISH) SAYING: "We have over a hundred million members. We're growing the fastest absolute rate in the company's history - faster than a member per second. To put that into context it took us nearly 500 days to add our first million members, it took us less than seven days to add the last million members and half of that is coming from overseas. So it's truly global growth at this point." In 2010, 45 percent of LinkedIn's revenues came from online advertisers looking get their message out to those more than 100 million members worldwide. But the biggest source of revenues came from other services. That's a key factor as LinkedIn looks to differentiate itself from other hot social networking companies expected to come to market like Facebook, Groupon, and Zynga - which make up the new "it" crowd for investors. Conway Gittens, Reuters

LinkedIn makes big IPO connection

Friday, May 20, 2011 - 01:43

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