Linkedin.com or How to Milk the Social Cow

linkedincom-logo-courtesy-of-the-investment-blog-doitinvestcom-vs1 This is becoming a fashion now – everybody talks about investing in social media. Facebook.com is valued anywhere between $40 billion and $100 billion, based on what the private investors paid for. RenRen, its Chinese counterpart, is already at $7.5 billion. And more are to come…
But one company did the step and they did it at the right moment. Linkedin.com, the site for professionals interaction who was launched in 2003 (before Facebook.com, launched in February 2004), listed itself this month. And it made it big time, with its shares increasing in 1 day to 90 USD/share, more than Google.
Why is this launch important?
First of all, because linkedin.com is the first major public listing of a social media company. Others are just talked about and valuations are very estimative, but linkedin.com opened the sector doors with a successful launch.
Secondly, the launch will provide cash for further growth. And linkedin.com will grow, at least for several months from now on, and I can bet with you that its’ shares price will go up too. They have many opportunities to go ahead and no strong competition, and unless a big market disruption will stop it, they will be at the forefront of the sector.
Does it make sense to invest in linkedin.com now? I think that if you spot a price below the initial valuation, you should go for it. There are risks associated, but in the long term any other launch of a social media website will pump up its shares too.

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