Eric Jackson of IronFire Capital Thinks LinkedIn IPO is Overvalued

Source: LinkedIn Press Center
LinkedIn, or Facebook for professional profiles, will be trading on the NYSE ($LNKD) today after it IPO'd 7.84 million shares at $45. It values the company at $4.25 billion. See the 10% owners and LinkedIn press release here. Eric Jackson, founder of hedge fund IronFire Capital, thinks it is overvalued. Watch the Bloomberg video below and read his article at Forbes ("Why You Should Opt Out of the LinkedIn IPO"). It will be very interesting to watch social networking companies trade on the exchanges. I originally found the video on Eric Jackson's blog Breakout Performance. He is also on Twitter. I have a question: How will social networking analysts and traders quantify immediate flight risk? (ex. "Was Friendster valuation too high?" MarketWatch 5/26/2004; "Amazingly, MySpace’s Decline Is Accelerating" - TechCrunch 3/23/2011).

*New article at Jim Cramer is Right that LinkedIn’s Underwriters Juiced the IPO

*Eric Jackson on Daily Ticker the next day: LinkedIn Debuts With a Bang, but Is It Worth $9B?

*New post on LNKD debut: LinkedIn Financials, Key Metrics, Valuation; Hit $122 High ($11.5 Billion Valuation) After $45 IPO (LNKD).

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