{"id":19949,"date":"2011-05-19T10:29:30","date_gmt":"2011-05-19T18:29:30","guid":{"rendered":"http:\/\/198.46.88.49\/?p=19949"},"modified":"2011-05-19T10:29:30","modified_gmt":"2011-05-19T18:29:30","slug":"renren-who-linkedin-lnkd-shares-skyrocket-140-on-ipo","status":"publish","type":"post","link":"http:\/\/198.46.88.49\/electrotech\/renren-who-linkedin-lnkd-shares-skyrocket-140-on-ipo","title":{"rendered":"RenRen Who?: LinkedIn LNKD Shares Skyrocket 140% On IPO"},"content":{"rendered":"<div id=\"attachment_19960\" style=\"width: 530px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/198.46.88.49\/wp-content\/uploads\/2011\/05\/linked-in-nyse-e1305829691879.jpg\"><img aria-describedby=\"caption-attachment-19960\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-19960\" title=\"linked-in-nyse\" src=\"http:\/\/198.46.88.49\/wp-content\/uploads\/2011\/05\/linked-in-nyse-e1305829691879.jpg\" alt=\"\" width=\"520\" height=\"317\" \/><\/a><p id=\"caption-attachment-19960\" class=\"wp-caption-text\">Photo credit: LinkedIn\/ NYSE Euronext\/ Valerie Caviness<\/p><\/div>\n<p>LinkedIn began trading under the LNKD ticker symbol on the New York Stock Exchange today, pricing its IPO at $45 per share &#8211; the high end of the range expected by investors. That would have given the company a $4.5 billion market cap on $243 million in net revenue in 2010, but that&#8217;s not where the price has settled. Jumping as much as 173% above that $45 share price, the stock is currently trading north of $106 and has gone as high as $122.70 today.<\/p>\n<p>When we outlined the reasons why <a title=\"5 Reasons Why RenRen Will Never Be a Facebook Equivalent\" href=\"http:\/\/198.46.88.49\/electrotech\/5-reasons-why-renren-will-never-be-a-facebook-equivalent\">RenRen would never be a Facebook equivalent<\/a>, most commentators were convinced that we&#8217;d missed something that would make the Chinese social network an indicator of the market viability of social networking sites as a whole. We didn&#8217;t.<\/p>\n<p>The simple fact is that RenRen has a number of challenges to overcome before becoming a good indicator of the viability of social networking companies in general, and in the days after their IPO the share price corrected to reflect that.<\/p>\n<p>Today&#8217;s explosive open for LinkedIn has had a positive effect for RenRen though: for the first time in a week, RenRen is trading above it&#8217;s $14 opening price again. While we still think there&#8217;s some long term value in RenRen &#8211; particularly for partnerships &#8211; we think LinkedIn has a far better chance of being the other social network stock that defines the sector (Facebook, of course, being the primary one whenever they IPO).<\/p>\n<p>Here&#8217;s why:<\/p>\n<p><a href=\"http:\/\/198.46.88.49\/wp-content\/uploads\/2011\/05\/renren-linkedin-revenue-comparison.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-19959\" title=\"renren-linkedin-revenue-comparison\" src=\"http:\/\/198.46.88.49\/wp-content\/uploads\/2011\/05\/renren-linkedin-revenue-comparison.jpg\" alt=\"\" width=\"520\" height=\"250\" srcset=\"http:\/\/198.46.88.49\/wp-content\/uploads\/2011\/05\/renren-linkedin-revenue-comparison.jpg 520w, http:\/\/198.46.88.49\/wp-content\/uploads\/2011\/05\/renren-linkedin-revenue-comparison-300x144.jpg 300w\" sizes=\"(max-width: 520px) 100vw, 520px\" \/><\/a><\/p>\n<p>There will be even more debate as to whether LinkedIn is worth its share price: Google&#8217;s current market cap is approximately 6x 2010 revenue, LinkedIn&#8217;s current market cap is 42x 2010 revenue, but compared to RenRen&#8217;s share price &#8211; currently 74x 2010 revenue &#8211; it&#8217;s downright easy to reconcile.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LinkedIn began trading under the LNKD ticker symbol on the New York Stock Exchange today, pricing its IPO at $45 per share &#8211; the high end of the range expected by investors. That would have given the company a $4.5 billion market cap on $243 million in net revenue in 2010, but that&#8217;s not where the price has settled. Jumping as much as 173% above that $45 share price, the stock is currently trading north of $106 and has gone as high as $122.70 today.<\/p>\n","protected":false},"author":1,"featured_media":19960,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6840],"tags":[3363,4108,5930,2453],"_links":{"self":[{"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/posts\/19949"}],"collection":[{"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/comments?post=19949"}],"version-history":[{"count":4,"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/posts\/19949\/revisions"}],"predecessor-version":[{"id":19962,"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/posts\/19949\/revisions\/19962"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/media\/19960"}],"wp:attachment":[{"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/media?parent=19949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/categories?post=19949"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/198.46.88.49\/wp-json\/wp\/v2\/tags?post=19949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}