Hysteria around LinkedIn stock hit a watershed moment around 11am today. It was around the same time that finance blogs were posting their reactions--many of which were simply befuddled by the fact that the social media company's stock had doubled in two hours. And then LNKD really took off. By noon, it had peaked at $115, a thrilling 137% surge up from the $45 opening price tag for institutional clients last night. As you can see, things have been a little shaky since then, but the stock is still stronger than expected. Here's a snapshot of today's performance from Google finance:
In what some have deemed the biggest IPO of an American internet company since Google, everybody has an opinion. While most of those opinions weigh whether or not we're in a new tech bubble, some people are just having fun with today's biggest finance story.
LinkedIn Got Screwed Out of $130 Million. Henry Blodget delivers the bad news on Business Insider--he'd previously made a very similar statement about Zipcar's IPO. LinkedIn's underwriters, Bank of America and Morgan Stanley, helped set the price of the shares at $45 each, but they probably could've asked for $90, effectively cheating LinkedIn out of over $100 million. "And the best part of this screwing is the fact that LinkedIn probably has no idea it got screwed. In fact, the company is probably thrilled with the IPO result," says Blodgett. And they should be, he says. But they could have been tens of millions of dollars more thrilled.