LinkedIn trades higher after adding more equity

Connecting with the people.

Shares of LinkedIn traded higher, even after the company added more equity to the market, as investors still appear to have an appetite for the company despite growing concerns about its valuation. About 8.0 million shares of LinkedIn hit the market Thursday, 1.3 million coming from the company and 6.7 million from insiders and early holders, roughly doubling the company’s float.

Late Wednesday, LinkedIn said the offering would be priced at $71 per share, implying the company made $92.3 million from the sale of its 1.3 million shares. Management said the stock sale was designed to increase its capitalization and financial flexibility, as well as increase the public float.

More stock could enter the market on Monday after the 180-day lockup period expires. While investors are still picking up stock, many analysts have expressed concerns about the company’s valuation. The stock currently trades at about 335 times next year’s expected earnings. In comparison, Google trades at roughly 16 times next year’s earnings.

LinkedIn (LNKD : NYSE : US$74.92), Net Change: 3.36, % Change: 4.70%, Volume: 5,177,158

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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