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LinkedIn is on track for the largest floatation of a technology company since the market bubble of 2000.
The site's projected value has jumped 30% ahead of its much-hyped initial public offering (IPO) on Thursday.
The big question is whether or not LinkedIn can justify the share price hike especially after the company revealed in the risk factors section of its prospectus that it does not expect to be profitable in 2011.
"Our philosophy is to continue to invest for future growth, and as a result we do not expect to be profitable on a GAAP basis in 2011," the filing said, referring to generally accepted accounting principles.
Investors keen to get in on the online networking craze snapped up LinkedIn Corp.'s IPO at $45 per share late Wednesday, hitting the top end of the projected price range. It minted LinkedIn with a market value of more than $4 billion, the highest for a U.S. Internet company taking its first bow on Wall Street since Google Inc. went public nearly seven years ago.