Wednesday, May 25, 2011

LinkedIn IPO: can this social media tool help you?


Shares of LinkedIn (LNKD) went public in the NYSE last week in what was the biggest IPO for a tech company since Google listed in 2004.  LinkedIn, also known as the social network for business may not be as popular as Facebook, Groupon and other social media companies lined up to make their debut in the NYSE, but nonetheless it doubled in value in its first day of trading.

So, everybody is asking if this is a new tech bubble?  Well, the sentiment is very different from the boom in 2000, where many companies went public without real business models or even decent revenue streams.  LinkedIn for instance, has over $200M in revenue from 3 diversified streams: advertising, subscription and recruiting contributing to a $15M bottom line profit.  However, the company is expected to post a loss in the next fiscal year due to heavy organic investment to boost its long term growth.

I can go on talking about whether the underwriting banks priced the shares correctly or whether the current valuation of 521 times earnings is too high, but this information is all out there.  I would like to end this by focusing on the real features of LinkedIn and how it has worked for me.  I am a big social media believer and LinkedIn is a great tool for me to expand my professional network which comes in handy when you are looking for a job or promoting your own business.  I have a lot of my US friends in my network but I would love to have my Brazilian friends as well, so I am sharing a video to get all of you up and running with this tool. 

Let me know what you think about LinkedIn.  Meus amigos, espero que conectem no LinkedIn comigo e me deixem saber o que pensam.

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