4 ms·

LinkedIn Shares Tumble After ‘Lockup’ Expires

19 points by rgarcia 15y ago

vsl2 15y ago
A big fall after releasing millions of shares to the market isn't surprising, particularly given the small initial float at IPO. I guess we'll see what LinkedIn's real market valuation is because though its definitely worth something, $10B it is not. And if the overall market continues to decline, tech companies such as LinkedIn are going to get hammered the most as investors start to really ask themselves what companies will make it through the mess the best (probably the big blue chip ones).
paul 15y ago
Misleading headline. At the moment, LinkedIn is down 2.78%, the dow is down 2.11%, and Google is down 2.54%, not a huge difference. This headline could be "Google Shares Tumble After LinkedIn Lockup Expires" and it would be just as accurate.
- dman 15y ago
  I am not sure that Financial news headlines try to be rigorous about causality. If you monitor news stories on Bloomberg from 15 minutes before the market you can often see the causality bounce around all over the place.
lpolovets 15y ago
(Disclosure: I used to work for LinkedIn) The stock closed down 2.78% while the market as a whole dropped 2.11%. How is that considered a tumble? Cherry-picking the lowest price of the day seems misleading.
- mcphilip 15y ago
  The article was published at 1 pm CT. The stock was down over 7% around that time[1]. The article didn't cherry-pick the days lows since it was published at the days lows. Still, this is a great example of how intraday market commentary is often invalidated in a matter of minutes. [1] http://finance.yahoo.com/q?s=lnkd http://finance.yahoo.com/q?s=lnkd
guimarin 15y ago
I wonder whether the stock is still overpriced, even at $70? seems to have rebounded a few bucks since the article. This might even be a good time to buy, if you think the company went down too much.
billpatrianakos 15y ago
The whole market got hit pretty badly today. This is nothing more than an unfortunate coincidence. Boo! Misleading! I call bullshit on this story. Let's see what happens on a day where things are fairly stable for the markets.
pbreit 15y ago
It is a common misconception that lockup expiration day typically means a large drop in a stock's price. While there is certainly additional selling pressure, the affect of expiration is usually already priced in to some extent. This article perpetuates the myth since as many have pointed out, after an initial artificial drop, the final close was about the same as markets overall.
- muzz 15y ago
  Misconceptions maybe about the magnitude of the drop, but not the existence of it. The gap down at the open, not to mention declines the previous days, was textbook.
  - pbreit 15y ago
    Not really: http://finance.yahoo.com/echarts?s=LNKD+Interactive#symbol=lnkd;range=5d;compare=ebay+yhoo+goog;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source= http://finance.yahoo.com/echarts?s=LNKD+Interactive#symbol=l...;
tkrajcar 15y ago
Three whole percent?! Zzz.
- muzz 15y ago
  The real story would be the ~30% decline in the past month, but that maybe that would be a less-sensational headline. http://finance.yahoo.com/q/bc?t=3m&s=LNKD&l=on&z=l&q=l&c=xlk&c=%5EGSPC&c=%5EIXIC&c=%5EDJI http://finance.yahoo.com/q/bc?t=3m&s=LNKD&l=on&z...

19 points by rgarcia 15y ago

vsl2 15y ago

A big fall after releasing millions of shares to the market isn't surprising, particularly given the small initial float at IPO. I guess we'll see what LinkedIn's real market valuation is because though its definitely worth something, $10B it is not. And if the overall market continues to decline, tech companies such as LinkedIn are going to get hammered the most as investors start to really ask themselves what companies will make it through the mess the best (probably the big blue chip ones).

paul 15y ago

Misleading headline. At the moment, LinkedIn is down 2.78%, the dow is down 2.11%, and Google is down 2.54%, not a huge difference. This headline could be "Google Shares Tumble After LinkedIn Lockup Expires" and it would be just as accurate.

dman 15y ago
I am not sure that Financial news headlines try to be rigorous about causality. If you monitor news stories on Bloomberg from 15 minutes before the market you can often see the causality bounce around all over the place.

lpolovets 15y ago

(Disclosure: I used to work for LinkedIn) The stock closed down 2.78% while the market as a whole dropped 2.11%. How is that considered a tumble? Cherry-picking the lowest price of the day seems misleading.

mcphilip 15y ago
The article was published at 1 pm CT. The stock was down over 7% around that time[1]. The article didn't cherry-pick the days lows since it was published at the days lows. Still, this is a great example of how intraday market commentary is often invalidated in a matter of minutes. [1] http://finance.yahoo.com/q?s=lnkd http://finance.yahoo.com/q?s=lnkd

guimarin 15y ago

I wonder whether the stock is still overpriced, even at $70? seems to have rebounded a few bucks since the article. This might even be a good time to buy, if you think the company went down too much.

billpatrianakos 15y ago

The whole market got hit pretty badly today. This is nothing more than an unfortunate coincidence. Boo! Misleading! I call bullshit on this story. Let's see what happens on a day where things are fairly stable for the markets.

pbreit 15y ago

It is a common misconception that lockup expiration day typically means a large drop in a stock's price. While there is certainly additional selling pressure, the affect of expiration is usually already priced in to some extent. This article perpetuates the myth since as many have pointed out, after an initial artificial drop, the final close was about the same as markets overall.

muzz 15y ago
Misconceptions maybe about the magnitude of the drop, but not the existence of it. The gap down at the open, not to mention declines the previous days, was textbook.
- pbreit 15y ago
  Not really: http://finance.yahoo.com/echarts?s=LNKD+Interactive#symbol=lnkd;range=5d;compare=ebay+yhoo+goog;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source= http://finance.yahoo.com/echarts?s=LNKD+Interactive#symbol=l...;

tkrajcar 15y ago

Three whole percent?! Zzz.

muzz 15y ago
The real story would be the ~30% decline in the past month, but that maybe that would be a less-sensational headline. http://finance.yahoo.com/q/bc?t=3m&s=LNKD&l=on&z=l&q=l&c=xlk&c=%5EGSPC&c=%5EIXIC&c=%5EDJI http://finance.yahoo.com/q/bc?t=3m&s=LNKD&l=on&z...