The valuations of social media websites have been extremely high, and with the price of LinkedIn’s stock after its IPO a few days ago, some are wondering if a new bubble is building. The stock price for LinkedIn quickly grew to twice what analysts had predicted. However, it seems that many investors weren’t just excited about LinkedIn, but rather social media websites as a whole. Many of these companies have not yet had their IPOs, and thus when LinkedIn had theirs, many were in a rush to buy its stock. If LinkedIn can command a price like this, what price would websites such as Twitter and Facebook have? Take a look at this article for more information.
Source: Slate Magazine