As I tweeted on Stocktwits last night, they have named a street sign after LinkedIn…”One Way”. What happens when you can “only” buy a stock? Ummm well, it goes up?
LinkedIn shares rose as high as $122.70 before closing up 109% at $94.25 a share. The closing price gave the Mountain View, Calif., company an eye-popping market value of nearly $9 billion, 37 times 2010 revenue of $243 million. By way of comparison, job hunting site Monster.com, a product of the first Internet boom, has a market cap of $1.9 billion, a paltry 1.7 times sales.
Longs had a blast in the name yesterday and traders scalped their faces off. The stock even gave after market buyers time make money. All in, it was a great day for VC’s, as they monetized a risk position that they have held for years. Go America, this is what it’s all about.
Next week will be different though, as options start trading and the floodgates open for short sellers. The markets are two sided, this week it was one sided.
But you already knew this.