LinkedIn with $10 million in net income (and $161 million) in profits during 1st 9 months of 2010 recently launched its IPO. Companies’ revenue are primary driven by users subscriptions and also by advertising on the site.
Its shares more than doubled in their public trading debut on Thursday, evoking memories of the investor love affair with Internet stocks during the dot-com boom of the late 1990s.
This meant that LinkedIn starting on bourses with a valuation of more than $4 billion.
With this LinkedIn also became the first major U.S. social-media company to sell shares to the public.
Reid Hoffman, company’s co-founder and former CEO instantly became a billionaire. The size this time may be bigger but he already made millions from PayPal earlier.
Jeff Weiner’s, the current CEO, also holds stocks in the company – worth $200million.
This has been quite a growth for company which began in one man’s living room more than a decade ago.
IPOs from companies like Twitter, Zynga, Groupon and Facebook may come out later in the year. Facebook will likely be the biggest IPO of these.
Money or not – these networks provide good value to users.