occupation LinkedIn social networking site from the original unknown until now became the Wall Street investors, it is a kind of unique cheats? American technology blog TechCrunch published a signed for Glen Salomon (Glenn Solomon) review article, the article believes that LinkedIn’s success can be attributed to four aspects, namely, patience and play, a unique competitive advantage, more revenue growth and older.the better products.
below is the full text of this article:
in 2010, if you’re talking to Silicon Valley’s brightest entrepreneurs and investors that professional social networking site LinkedIn will be worth more than Groupon, Zynga or Twitter in 2013, you might be laughed at. If you say that the value of LinkedIn will exceed the sum of Groupon, Zynga and Twitter, up to 1/3 of Facebook, then no one will believe you. At that time, LinkedIn is not as exciting as today’s Internet darling, so there were a lot of people, including myself, questioning LinkedIn.
LinkedIn, although the performance is not as exciting as the Internet company, but the company apparently made a series of things right: Planning of product development roadmap, to formulate the company strategy and build a team. Since the company’s IPO, it’s the right move to get a huge return. A case study on LinkedIn raised a lot of interesting problems for the founders and investors: why LinkedIn still has such excellent performance after the listing? To what we can from its IPO and stock market performance in high school? In this paper, I will from the following four aspects elaborated briefly why doing so well:
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LinkedIn approach makes Wall Street very satisfied. The price of the company’s IPO set in the far below the market clearing price level, efforts to reduce people’s expectations. Moreover, since the IPO, the company has never publicized its own forecasts and estimates of Wall Street. In fact, as you can see from the picture below, Wall Street’s revenue expectations for LinkedIn in 2013 have increased from $755 million in the company’s IPO in mid May 2011 to $1 billion 500 million today. And their expectations for LinkedIn’s 2013 EBITDA (earnings before interest, taxes, depreciation and amortization) have grown from $147 million in IPO to $367 million today. With the expected increase in both revenue and earnings expectations, its share price has also increased.
this strategy requires patience. It takes time to