S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Media

Facebook/LinkedIn IPOs: Is the Value of Social Networking on the Decline? (LNKD, WBSN)

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

courtesy Facebook Inc.
There are a couple of issues affecting social networking values today, although they certainly are not in the breaking news categories. Nonetheless, these are critical ongoing issues and the valuation of social media is being brought into question. Massachusetts Financial Services Company appears to have significantly slashed its stake in LinkedIn (NYSE: LNKD). An SEC filing shows that MFS now has an aggregate outstanding share count of 331,990 shares or 3.7% of the total interest, down from 925,560 shares at the last filing date with a prior interest of just over 10%.

This filing comes on the same day that Jefferies initiated coverage of LinkedIn with a mere “Hold” rating with an $81.00 price target.

What you have to ask, or re-ask, is this: Did Mark Zuckerberg miss his chance for an IPO? We asked this before, and now the WSJ has an article that is not really breaking news but discusses “Facebook Shares Losing Some Sizzle” based upon prior share sale prices of late.

Facebook has recently gone through privacy changes yet again, somewhat annoyingly to some of the less-positive Facebookers. It was also recently announced that Facebook will have Websense (NASDAQ: WBSN) police its links to keep users from clicking on links that go to malware, spyware and other infecting sites.

Facebook is still extremely valuable, but the direction is now backing off that key $100 billion that Mark Zuckerberg seems to be after. With the value of internet ads back on the decline, we have to wonder just how valuable this can be. All ships get pulled out to sea during low tides.

LinkedIn shares are down 0.5% at $75.18 today when the NASDAQ itself is up 2.5%.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

Continue Reading

Jon C. Ogg |

2 Analysts Say ‘Buy Facebook’… How To Buy Facebook Ahead of the IPO (FB, ZNGA, MSFT, GSVC, SVVC, SOCL)

Facebook is not even public yet and we already have two analysts who have issued “Buy” ratings.  On Friday came…
Short Interest Looks Selective in Social Media Stocks
Chris Lange |

Short Interest Looks Selective in Social Media Stocks

Social media has taken the world by storm, building virtual communities for anyone who has internet access and allowing people…
Paul Ausick |

The Facebook Paradox: If A Stock’s Value is Cut in Half … (FB, ZNGA, GRPN, LNKD)

courtesy Facebook Inc.Shares of Facebook Inc. (NASDAQ: FB) have now lost 50% of their value since the company’s March IPO.…
Douglas A. McIntyre |

Which Social Network Will Be The Last IPO?

There is a game of chicken between social networks and the stock market. Each new IPO raises more questions about…
Jon C. Ogg |

The Hoodie Factor: Facebook Breaks $20, Options Say $15 Is Next

Facebook, Inc. (NASDAQ: FB) is obviously about as silly of a company as a group of billionaires could run.  That…
Douglas A. McIntyre |

Why Mark Zuckerberg Should Resign from Facebook

That is an attention grabbing headline. And Mark Zuckerberg should leave Facebook (NASDAQ: FB). He will not be pushed out, though,…
Paul Ausick |

Do CEOs Use Social Media?

Some pretty high-profile CEOs have jumped on the social media train, but most are only occasional users.
Jon C. Ogg |

LinkedIn IPO Valuation Now $4.2 Billion… Is That Too High??? (LNKD, RENN, FFN, GS, MHP, SAP)

We are awaiting the upcoming initial public offering of LinkedIn Corporation.  Apparently, investors are waiting as well.  The new IPO…
Jon C. Ogg |

LinkedIn Scores Not One but Two New Street High Analyst Targets

ThinkstockLinkedIn Corp. (NYSE: LNKD) is the social networking stock that just keeps on cranking out profits for its investors. Now…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618