When professional networking site LinkedIn debuted on the NYSE in May, shares opened at $83, double the initial offer price.The first high-profile tech firm to go after an IPO in months, LinkedIn signaled a turning point for the sector. Shares of LinkedIn have cooled since then, closing Friday at $63.08. Earlier in November, LinkedIn completed a secondary offering, raising $88 million and doubling the number of shares available in the public markets. The selling shareholders included Bain Capital which sold all of its 3.7 million shares, around 4.2% of the company. During the most recent quarter ended in September, LinkedIn said its membership base grew to 131.2 million, an increase of 63% from the same period last year. The company reported its first quarterly loss since going public, while revenue more than doubled to $139.5 million, sparking concern that the company is overspending. Analysts believe much of LinkedIn's growth will come from new products, particularly as the company opens up its platform to third-party application providers. In April, LinkedIn announced it was releasing plug-ins that developers could integrate with their own Web sites which allows users to share articles with the LinkedIn community, view member profiles and browse company data. "To sustain robust revenue growth rates, the company will need to have to move beyond simple hiring solutions and enter new markets," Morningstar analyst Rick Summer wrote in an analyst note.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV