Yes, LinkedIn stock is publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol LNKD. LinkedIn completed its initial public offering (IPO) and became a publicly traded company on May 19, 2011.
LinkedIn is the world’s largest professional networking platform with over 800 million members worldwide. The company was founded in 2002 and established itself as the leading online network for professionals looking to connect with career opportunities. In 2011, LinkedIn decided to go public, making its shares available for purchase on the public stock market.
An initial public offering (IPO) is the process by which a private company first sells shares of stock to the public on an exchange like the NYSE or Nasdaq. This transitions the company from privately held to publicly traded. It is a significant event for any company, allowing early investors and employees to generate returns on their investment and providing the company access to new capital for growth.
For LinkedIn, the IPO was a major milestone that marked its entrance into the public markets after years of building up its member base as a private company. By going public, LinkedIn was able to boost its financial profile, raise funds for expansion, increase brand visibility, and allow outside investors to purchase ownership stakes in the company.
LinkedIn’s IPO
LinkedIn filed its S-1 form with the Securities and Exchange Commission (SEC) on January 27, 2011 to formally register its intent to go public. The filing provided the first in-depth look into LinkedIn’s financials and business model to potential investors ahead of the IPO. Some key details from LinkedIn’s S-1 include:
- LinkedIn had revenue of $243 million in 2010, up 111% from the year before.
- The company was not yet profitable, reporting a net loss of $3.9 million in 2010.
- LinkedIn had over 100 million registered members as of December 31, 2010.
- The majority of revenue came from hiring solutions products for recruiters.
After the S-1 filing, LinkedIn set out on a pre-IPO roadshow to market the offering to institutional investors like mutual funds, hedge funds, and pension funds. The company and its underwriters met with these investors across cities like New York, Boston, Chicago, and San Francisco.
Demand for the offering shares was strong among investors, evidenced by the company setting an initial target price range of $32 to $35 per share and then raising it to between $42 and $45 per share heading into its IPO. The increase reflected investors’ appetite for the company’s stock at a higher valuation.
On May 19, 2011, LinkedIn officially went public, selling 7.84 million shares in its IPO at a price of $45 per share. The shares began trading that same day on the NYSE under the “LNKD” ticker symbol. By the end of its first day of trading, LNKD stock closed up 109% at $94.25 per share, valuing the company at close to $9 billion.
Key LinkedIn IPO Details
- IPO Date: May 19, 2011
- IPO Price: $45 per share
- Shares Offered: 7.84 million
- Total IPO Value: $352.8 million
- First Day Close: $94.25 per share, up 109%
The successful IPO marked the start of LinkedIn’s life as a publicly traded company. It raised nearly $353 million in proceeds while also allowing longtime shareholders and employees to cash out a portion of their holdings through the sale of stock.
LinkedIn’s Performance as a Public Company
In the decade since its IPO, LinkedIn has seen its business continue to grow as a publicly traded company:
- LinkedIn’s revenue has increased over 15x from $243 million in 2010 to $7.5 billion in 2021.
- Registered members have shot up from 100 million at IPO to over 800 million members today.
- The company achieved profitability in 2011 and has generated consistent profits over the last several years.
This growth has led to stock gains for long-term LNKD investors. Though its stock has seen some volatility, LinkedIn shareholders who bought at the IPO and held on have achieved substantial returns:
Purchase Date | Purchase Price | Current Price (as of October 2022) | Return |
---|---|---|---|
LinkedIn IPO (May 19, 2011) | $45 per share | $172 per share | 282% |
In 2016, LinkedIn agreed to be acquired by Microsoft for $26 billion, at a valuation of $196 per share. This provided a huge premium for shareholders who had invested at the IPO price. While LNKD is no longer trading as LinkedIn has become a wholly owned Microsoft subsidiary, long-term shareholders did extremely well following the company’s IPO.
Conclusion
LinkedIn successfully transitioned from a private company to a publicly traded one through its May 2011 initial public offering. The company priced its IPO shares at $45 each and the stock jumped 109% on its first day of trading on the New York Stock Exchange under the “LNKD” ticker symbol.
In the decade since going public, LinkedIn’s member base, revenue, and profits have all surged as the platform solidified itself as one the leading professional networks globally. Investors who got in on the ground floor at LinkedIn’s IPO and held the stock realized substantial gains of 282% or more before the company was acquired by Microsoft in 2016.
Overall, LinkedIn provides a strong example of an internet company that used the public markets and an IPO to accelerate its growth and create immense value for long-term shareholders through its stock performance as a publicly traded company.