LinkedIn Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Freshly minted shares of business-minded social network LinkedIn (NYSE: LNKD  ) exploded right way, soaring as high as $92.99 after opening at $45 per share for a peak pop of 106.6%.

So what: As of this writing, just before lunch, 11.6 million shares had changed hands at an average price of about $86. That's just about $1 billion of paper-pushing in half a day's worth of action. To put that number into perspective, large-cap market darlings Baidu (Nasdaq: BIDU  ) and Amazon.com (Nasdaq: AMZN  ) typically attract about $1 billion of market action a day -- with market caps of $46 billion and $90 billion, respectively.

Now what: Okay, so everyone wants a piece of the new kid on the block. But LinkedIn's prospectus is full of bright-eyed membership-boosting plans with very little economic value. Google (Nasdaq: GOOG  ) shares climbed steadily for years after its storied IPO but Vonage Holdings (NYSE: VG  ) crashed and burned immediately. There's no way to know which way LinkedIn is going next, which makes me want to wait until we can buy volatility-happy options on the stock instead of the uncertain shares themselves.

Interested in more info on LinkedIn? Add it to your watchlist.

Fool contributor Anders Bylund owns shares of Google but holds no other position in any of the companies discussed here. The Motley Fool owns shares of Google. Motley Fool newsletter services have recommended Google, Amazon.com, and Baidu. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1496920, ~/Articles/ArticleHandler.aspx, 8/21/2014 10:52:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement