“(Reuters) – An initial public offering by social networking firm LinkedIn Corp to raise about $341 million seems poised to be a stunning success, but it carries a number of risks that may shake up investors in the future.
The IPO is expected to price after the close of U.S. markets on Wednesday and start trading on Thursday.
In the fervor surrounding the rush to the first major U.S. social networking company to become public, investors may overlook some risks that could sour LinkedIn in the future, analysts say.
One of the biggest risks may be LinkedIn’s gutsy bet on its future growth — combined with an admission that it does not expect to be profitable in 2011 on a U.S. generally accepted accounting principles (GAAP) basis…..”
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