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Big First Day for LinkedIn; 7.84 Million Shares Sold

LinkedIn(NEW YORK) -- On Thursday, the social networking company LinkedIn went public to much fanfare.
Insiders got shares for $45 a piece last night. By the end of their first trading day those shares were selling for more than $94 (after touching more than $120 at mid-day). The closing price for shares was $94.25 (+$49.25 or 109.44%).
The company sold 7.84 million shares in the IPO Thursday; every one of those shares traded hands almost four times as investors scrambled to get in on the action (trading volume of 30.1 million shares).

With the IPO offering a flashback to the go-go days of the dot-com boom, people are now talking about what could be much bigger IPOs for other companies that play in the Internet’s social sphere -- like Facebook and Groupon.
LinkedIn currently claims more than 100 million members who use the site for career networking and recruitment. Facebook has a much more engaged community of 600 million people who share billions of photos and status updates on the site.
While there is a lot of excitement around these social networking companies, many investors are harkening back to the bust which followed the previous boom.
Should LinkedIn, a company which made just $15 million in profits last year and says it will lose money in 2011 as it invests in future growth, command a market value of more than $8 billion? That’s for the market to decide.
But don’t be surprised to see Friday’s headlines to be pointing to both the dot-com era’s successes as well as the massive failures. had the biggest IPO pop in history (and still does), its shares jumping more than 600 percent on the first day of trading. But folks who weren’t surfing back in 1998 (and even some who were) probably couldn’t tell you what was.

Copyright 2011 ABC News Radio

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