For the first time in social media history the company known as LinkedIn has opened up to the public to sell shares of its company, on opening day the shares, that sold for $45 a piece sky rocketed within the same day to a whopping $95.00 making share holders and company owners quite excited about the news. But hold your horses, I wouldn’t go betting your car title loan against it. There is trend in companies like this in their first day in the stock market. People get excited and buy in on the new and exciting industry.
LinkedIn which is a social networking much like Facebook, geared for professionals to share resumes, and employment related information, is the first of the social media networks to open up it’s doors to the public shares. Many believe that is why the stocks took off soaring 109% from the original offer. Investors are hopeful that this will open the door for other companies such as Facebook, MySpace, and Twitter and those they will follow through. This would begin a totally new advent and avenue for investors to put their money in. It is the way of the future, the technology frenzy has taken over and everyone wants a piece of it. To give you an idea of the broad scope of opportunities this would open, LinkedIn has around 100 million users, while facebook has more than 600 million followers, and earnings to boast about. If they ever opened their doors to public shares, investors and amateurs alike would go into a mad rush to buy shares of the biggest social media King Company. So far though, no sign of that in the near future.
The news of its rapid growth makes some investors worried that the value of the stock exceeds the $243 million of revenue that the company generated last year. Making it that because of it being one the first social media groups to go public, it was at an advantage surely. The stock market however, as we all know has a mind of it’s own and do what it wants to. For now, people are celebrating their new wealth; investors who had purchased private stocks last year at low prices around the $20 mark are jumping for joy over the amazing growth they’ve witnessed in just one year. However not all investors are hopeful of the quick rise of the stocks, many believe that the smaller network group faces unforeseen challenges from their much bigger social networking counterparts facebook, but who doesn’t right? Can anyone ever become bigger or better than Facebook.