Facebook/LinkedIn IPOs: Is the Value of Social Networking on the Decline? (LNKD, WBSN)

There are a couple of issues affecting social networking values today, although they certainly are not in the breaking news categories. Nonetheless, these are critical ongoing issues and the valuation of social media is being brought into question. Massachusetts Financial Services Company appears to have significantly slashed its stake in LinkedIn (NYSE: LNKD). An SEC filing shows that MFS now has an aggregate outstanding share count of 331,990 shares or 3.7% of the total interest, down from 925,560 shares at the last filing date with a prior interest of just over 10%.

This filing comes on the same day that Jefferies initiated coverage of LinkedIn with a mere “Hold” rating with an $81.00 price target.

What you have to ask, or re-ask, is this: Did Mark Zuckerberg miss his chance for an IPO? We asked this before, and now the WSJ has an article that is not really breaking news but discusses “Facebook Shares Losing Some Sizzle” based upon prior share sale prices of late.

Facebook has recently gone through privacy changes yet again, somewhat annoyingly to some of the less-positive Facebookers. It was also recently announced that Facebook will have Websense (NASDAQ: WBSN) police its links to keep users from clicking on links that go to malware, spyware and other infecting sites.

Facebook is still extremely valuable, but the direction is now backing off that key $100 billion that Mark Zuckerberg seems to be after. With the value of internet ads back on the decline, we have to wonder just how valuable this can be. All ships get pulled out to sea during low tides.

LinkedIn shares are down 0.5% at $75.18 today when the NASDAQ itself is up 2.5%.

JON C. OGG