Awesome, I hope Linkedin's rise creates the opportunity for a nextgen upstart to emerge. There's a lot to improve on Linkedin's model (admittedly a very good one). Get to work!
I'm not who you were asking, but snappier performance.
And reward people for good use of the site. Share your contact list with your contacts? You get some free InMail credits. Complete profile? Some more. etc.
I don't know of anything offhand, I just know that it's been extensively studied. One of the terms you might want to search for is "first day pop." If you read through a few of those papers then you should be able to find most of the other important metrics as well.
For a company like LinkedIn with relatively weak fundamentals, one would expect the executives to purposely underprice the stock in order to generate a big first day pop because they are looking for an exit. So if I had money to invest, I'd probably buy at the opening bell and sell at noon. But don't take that as investment advice.
The "first day pop" is largely unavailable to the average person. You're right that underwriters price the IPO for this phenomenon, but it is to entice their clients to buy. The pop is from outsiders (you) buying from insiders.
If you're not dealing in big money, you won't be buying from the underwriter at the IPO price, you'll be buying at the higher price (if you put in a market order), or not at all (if you put in a limit order near the offering price).
That's not to say that investing in an IPO is a bad long-run decision.
> one would expect the executives to purposely underprice the stock in order to generate a big first day pop because they are looking for an exit.
The executives typically are locked not being able to sell on the first day of trading. It also looks bad if they do sell.
It's the investment bankers that want to see a stock shoot up on the first day of trading. It's their clients who are the most likely to hold the stock for an hour and then sell it.
>While LinkedIn’s move is unconfirmed, Kara Swisher has a reliable track record in such matters. There’s little more to say about this report at the moment, but we’ll be watching what happens once the New York stock exchange closes today.
NYSE? Isn't it more likely that LinkedIn would debut on NASDAQ?
Off topic: I've always been surprised by LinkedIn's success, though it seems that's a problem with my perception as a freelance web developer.
I can see their value to those looking for salaried jobs, but I'd be interested to hear if/how people in a similar situation to me find LinkedIn useful.
I am on LinkedIn, and I don't actively use it. The only active user I met once was a recruiter of creatives. She logged into LinkedIn and we saw her private inbox. Filled with hundreds of messages about people in her industry who were looking for someone or looking to hire someone. I was amazed, we were amazed (this was 2006). She gave us one really good tip - almost all the job postings on LinkedIn are posted with the name of the hiring manager. That is why job searching on LinkedIn is better (even if they aren't posting the hiring managers' name now in 2011).
At a bar a month ago, I met someone who asked if I knew a friend of his who used to work for my company. Quick search of the LinkedIn app and found him. LinkedIn is gold for finding out where someone in the technology industry is now working. Especially if you have connections who have hundreds of connections.
I signed up for LinkedIn probably 4 years ago or so, and all it's really done for me since is notify me by email when all the business school grads I've ever met discover LinkedIn.
ugh what a waste of money, LinkedIn has never once been useful to me.. I actually deleted my account the other day...and they continue to spam me, and to unsubscribe i need my account. AWESOME GUYS! This is the next myspace not fazebooks
22 comments
[ 2.8 ms ] story [ 46.4 ms ] threadhttp://kara.allthingsd.com/20110127/here-comes-another-web-i...
RSS feed: http://sec.gov/cgi-bin/browse-edgar?action=getcompany&CI...
And reward people for good use of the site. Share your contact list with your contacts? You get some free InMail credits. Complete profile? Some more. etc.
There is a lot of academic research on this that you should look at.
For a company like LinkedIn with relatively weak fundamentals, one would expect the executives to purposely underprice the stock in order to generate a big first day pop because they are looking for an exit. So if I had money to invest, I'd probably buy at the opening bell and sell at noon. But don't take that as investment advice.
If you're not dealing in big money, you won't be buying from the underwriter at the IPO price, you'll be buying at the higher price (if you put in a market order), or not at all (if you put in a limit order near the offering price).
That's not to say that investing in an IPO is a bad long-run decision.
The executives typically are locked not being able to sell on the first day of trading. It also looks bad if they do sell.
It's the investment bankers that want to see a stock shoot up on the first day of trading. It's their clients who are the most likely to hold the stock for an hour and then sell it.
NYSE? Isn't it more likely that LinkedIn would debut on NASDAQ?
I can see their value to those looking for salaried jobs, but I'd be interested to hear if/how people in a similar situation to me find LinkedIn useful.
I mean, I can't even tell these people to fuck off like I can with my friends that want me to be on Facebook.
At a bar a month ago, I met someone who asked if I knew a friend of his who used to work for my company. Quick search of the LinkedIn app and found him. LinkedIn is gold for finding out where someone in the technology industry is now working. Especially if you have connections who have hundreds of connections.
I'm scared by how much data they'd have on my life and it being out of my control how they use it.