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| LinkedIn shares double on debut | |
| (about 1 hour later) | |
| Shares in business networking website LinkedIn have more than doubled on their trading debut in New York, having been priced at $45 each. | |
| Its share price hit $93 at one point in the sort of debut rally not seen since the dotcom bubble of the late 1990s. | |
| The initial sale price was already at the top of an increased range. | The initial sale price was already at the top of an increased range. |
| LinkedIn sold 7.84 million shares, raising $352.8m (£218.3m) and valuing the company at $4.25bn. | LinkedIn sold 7.84 million shares, raising $352.8m (£218.3m) and valuing the company at $4.25bn. |
| Some analysts believe the strong debut is down to investors' over-enthusiasm for social media stocks. | |
| "The price we're seeing for LinkedIn shares has nothing to do with the value of the company," says Paul Kedrosky, angel investor and senior fellow at the Kaufman Foundation. | |
| "It's just an indication of how much appetite and interest there is for social media stocks." | |
| "LinkedIn is the only trading vehicle for this type of stock. It's the equivalent of trying to funnel thousands of people through a single door". | |
| "Every investor I know is currently scouring around for a social media company to take public. They think it's worth selling at this stage, but not necessarily buying the stocks," he added. | |
| $4bn looks a very fancy price for a company with revenues last year of $243m and profits of $15.4m. | $4bn looks a very fancy price for a company with revenues last year of $243m and profits of $15.4m. |
| That looks modest compared with the figures of $50bn and more being bandied around for Facebook's valuation. | That looks modest compared with the figures of $50bn and more being bandied around for Facebook's valuation. |
| Both price tags will look dumb to those sceptics who see Facebook as an ephemeral craze for people with poor social skills and LinkedIn as little more than a glorified Rolodex | Both price tags will look dumb to those sceptics who see Facebook as an ephemeral craze for people with poor social skills and LinkedIn as little more than a glorified Rolodex |
| There have been concerns that social networking sites are creating a new stock market bubble. | There have been concerns that social networking sites are creating a new stock market bubble. |
| LinkedIn is the first US social network site to get a share listing, and was being seen as a test of appetite for them. | LinkedIn is the first US social network site to get a share listing, and was being seen as a test of appetite for them. |
| Shares in one of China's biggest social networking sites Renren rose sharply on their debut in New York earlier this month. | Shares in one of China's biggest social networking sites Renren rose sharply on their debut in New York earlier this month. |
| Renren's shares were priced at $14, and in their first day of trading peaked at $21.93 before closing at $18.01. | Renren's shares were priced at $14, and in their first day of trading peaked at $21.93 before closing at $18.01. |
| Facebook and Twitter are both expected to seek stock market listings in the next few years. | Facebook and Twitter are both expected to seek stock market listings in the next few years. |
| On Wednesday, the price range for LinkedIn's initial public offering was lifted from $32 to $35 a share to a range of $42 to $45. | On Wednesday, the price range for LinkedIn's initial public offering was lifted from $32 to $35 a share to a range of $42 to $45. |
| Before shares in LinkedIn started trading, this new price range had valued it at about 17 times its earnings from 2010. | Before shares in LinkedIn started trading, this new price range had valued it at about 17 times its earnings from 2010. |
| That is about half of the valuation multiple being given to Facebook, but considerably higher than more mature internet stocks that already have stock market listings. | That is about half of the valuation multiple being given to Facebook, but considerably higher than more mature internet stocks that already have stock market listings. |
| Google, which went public in 2004, has a market value of about six times its annual revenues. | Google, which went public in 2004, has a market value of about six times its annual revenues. |