LinkedIn is the first top social networking brand to sell its stock publicly. Facebook, Twitter and Zynga are expected to have their own IPOs over the next year. The site’s big first day are likely to encourage other social media sites to make public stock market debuts, and it also may fuel fears of another IPO bubble
When the shares closed at US$94.25 each yesterday, the one-day-old public company was valued at $8.9 billion, the Wall Street Journal explained today.
“It really is the sign of an irrational exuberance associated with anything that has social in it,” social media analyst Josh Bernoff, senior vice president of Forrester Research, told the San Francisco Chronicle. “What you’re seeing here is enthusiasm that goes way beyond what the prospects are for the company itself.”