LinkedIn may be closer to proving it can fulfill its monster IPO and rich valuation after projecting bigger 2011 revenue growth.
Though its shares fell 9.6 percent Thursday when the markets dropped, it recouped nearly 5 percent of shares in after-hours trade. Shares have nearly doubled since LinkedIn’s May debut as the social networking site to go public.
LinkedIn forecasted third quarter revenue of between $121 and $125 million and revenue of between $475 and $485 million for 2011. Both forecasts are well above analysts’ predictions.
“We see great things for it. Some of what is happening in the marketplace is, investor demand for social media companies is taking precedence over the cash value of the underlying shares,” Evercore Partners analyst Ken Sena told Reuters. “They did set the bar really low. The numbers needed to be good to support the lofty valuation.”
Read more at Reuters.