LinkedIn (LNKD) Investors Forget About IPO Collapse, Up 34% This Week
Tweet
Share
E-mail
Get Alerts LNKD Hot Sheet
Join SI Premium – FREE
LinkedIn Corporation (Nasdaq: LNKD) is continuing to recover from its post-IPO collapse, which left a bad taste in the mouth of many.
After pricing at $45, opening at $83 and trading as high as $122.70 on the first day of trading, shares fell all the way back down to $60.14 in a dramatic decline.
Now the tides have turned. The social networking stock has been up every day this week, rising an astonishing 34 percent over the short period.
The quite period recently expired, which freed up a number of analysts to start coverage on the name. Four analysts initiated coverage on the stock on Tuesday, all were positive. The analysts said the company is disrupting both the online and offline job recruitment market and is well positioned to take share of both the ~$27 billion staffing and talent acquisition market and the ~$70 billion online advertising market.
Interestingly, with this week's surge, shares of LinkedIn have already surpassed the highest price target on the Street ($92).
Even with shares on the rise, caution resigns due to the lofty valuation. In the first quarter of 2011 the company made revenue of $99.93 million and EPS of $0.02. On average, analysts see the company earning $0.34 per share in 2012. That would put the current forward multiple at 277x. That valuation would make even notoriously forward looking Baidu (Nasdaq: BIDU) proud: it trades at a valuation of just 35x 2012 numbers.
Shares last traded up 4% to $93.61.
After pricing at $45, opening at $83 and trading as high as $122.70 on the first day of trading, shares fell all the way back down to $60.14 in a dramatic decline.
Now the tides have turned. The social networking stock has been up every day this week, rising an astonishing 34 percent over the short period.
The quite period recently expired, which freed up a number of analysts to start coverage on the name. Four analysts initiated coverage on the stock on Tuesday, all were positive. The analysts said the company is disrupting both the online and offline job recruitment market and is well positioned to take share of both the ~$27 billion staffing and talent acquisition market and the ~$70 billion online advertising market.
Interestingly, with this week's surge, shares of LinkedIn have already surpassed the highest price target on the Street ($92).
Even with shares on the rise, caution resigns due to the lofty valuation. In the first quarter of 2011 the company made revenue of $99.93 million and EPS of $0.02. On average, analysts see the company earning $0.34 per share in 2012. That would put the current forward multiple at 277x. That valuation would make even notoriously forward looking Baidu (Nasdaq: BIDU) proud: it trades at a valuation of just 35x 2012 numbers.
Shares last traded up 4% to $93.61.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nscale targets up to $3B in US IPO as soon as September - Bloomberg
- UDynamics files for Nasdaq IPO of 5.6 million shares at $5-$7 per share
- New York Fed raises Q3 2026 GDP forecast to 2.3%
Create E-mail Alert Related Categories
IPOs, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
