LinkedIn shares appear to be rallying again today despite a mixed bag of forecasts from financial bloggers. The social network for professionals turned heads and dropped jaws last Thursday when a hotly anticipated initial public offering hurdled shares over $100 in the first day of trading. Since the company priced its IPO at $45, some speculated that bankers scammed LinkedIn out of hundreds of millions of dollars that the too-low offering price left on the table. The stock began tumbling downward Friday in the face of continuing hysteria surrounding the ballooning stock price and warnings of a new tech bubble and plunged to a still pretty handsome price of $84 per share. Late in the day, the stock took a turn and is inching its way back up towards $100 per share today. Here's what the pundits have been saying.
The banker scam story is bunk according to Andrew Ross Sorkin at The New York Times. Despite the burgeoning national past time of bashing investment bankers and lambasting big business in general, the buzz surrounding Joe Nocera's theory that the banks scammed LinkedIn out of hundreds of millions of dollars is unwarranted. After all, many blasted the company for raising its price at the last minute only to suggest later that LinkedIn should've priced the stock higher in the face of such high demand. "If the banks had priced the offering at about $94--the price it closed at in its first day--and it subsequently fell to $45 a share, the public (and perhaps Mr. Nocera) would be up in arms that Wall Street had foisted a lousy deal on its unsuspecting clients, who were clamoring for a supposedly hot deal," says Sorkin.