It seems that the tech bubble never really burst, it just went flat for a while. But someone has managed to repair the small puncture. LinkedIn.com floated today and their share price is rocketing.
LinkedIn started trading at $45, valuing the company at $3 billion. At the time of writing (16.09hrs BST, 19/05/11) the price is $87.75, up $42.75 since it opened trading in the USA. This is a rise of 95%. It has dropped a little since the morning surge.
Get the current share price here: www.google.com/finance?q=linkedin
LinkedIn is like Facebook but for professionals and business managers. It is a way to connect with buyers, clients, partners and generally build new business relationships.
LinkedIn now boasts having over 100 million professionals and 2 million companies on its database. This represents a huge database of new business relationships that you could form. This is why it is now valued so highly.
Like Google, LinkedIn is another tech giant in Mountain View, California. Also like Google, its shares are in demand. LinkedIn opened trading at $45 today and shot up to $92.99 within hours.
Not everyone is convinced that the share price matches its true value. Much like Facebook, it is taking LinkedIn a while to work out exactly how it should monetize on its massive user base.
LinkedIn differs from Facebook, Twitter and Google in one important way though. People become members of the website as this helps them to promote their business and build relationships. It does not rely on volatile advertising revenues – it controls the membership rates and there can predict revenue and growth very accurately.
Many people on LinkedIn pay the highest membership rates which are currently $99.95 per month for the Executive package. This allows you to contact anyone in the LinkedIn database by their internal mail system – even people that you have no connection with.
As more people become aware of LinkedIn’s potential, which will happen when the news of the floatation hits the mainstream media, LinkedIn will win more clients and make more profits. The shareholders will be pleased!