Custom Search



Posts Tagged ‘LinkedIn’

Yandex IPO: 3 MORE reasons to invest in the ‘Google of Russia’

I’d recommend waiting until volatility dies down after Yandex’s first few days of trading, but I’m convinced the long-term prospects for the company look good – at least as long as the political situation in Russia remains stable.

Late last month, I laid out 5 reasons to invest in Yandex stock, and now that Yandex’s IPO date (NASDAQ:YNDX) is upon us and shares are set to start trading today (on May 24, 2011), I’d like to offer a few more bullish arguments for the “Google of Russia.” Here are three MORE reasons to invest in the Yandex IPO:

1) More than Russia. Yandex dominates the Russian search market, but the search engine’s actually headquartered in The Netherlands. Yandex also operates in Ukraine, Kazakhstan and Belarus, and the company has an English-language version of its search engine (Yandex.com) in alpha testing right now.

While Yandex.com is nowhere near as fast or comprehensive as Google, it does have some interesting features. For example, when browsing through search results, you can hold down the CTRL key and hit the left or right arrows on your keyboard to move to the next or previous page of search results (just make sure your cursor isn’t in the search box to activate the function).

Currently, the Ukrainian version of Yandex (Yandex.ua) is the sixth most-visited site in the Ukraine, the fourth most-visited site in Kazakhstan (Yandex.kz) and the fifth most-visited site in Belarus (Yandex.by), according to stats from Alexa.com.

2) The Wild Wild Web. Just 43 percent of Russians currently have Internet access, per InternetWorldStats. Compare that with the more mature Internet market in the U.S. where 77 percent of the country has Web access.

To reach the maturity of the U.S. market, web access in Russia will need to rise nearly 80 percent in the coming years. That would exponentially drive up the number of pageviews served up by Yandex and increase the site’s advertiser base. Last quarter, Yandex served ads for 127,000 advertisers in Russia. That’s up more than 35 percent year-over-year, according IPO documents the company filed with the SEC.

3) Buyout by Google? One of the more interesting arguments for Yandex shares is that the company could be a potential acquisition target. Yandex owns more than 65 percent of the search market in Russia while Google controls just 20 percent of Runet searches. Russia’s booming online ad growth could bolster Google’s bottom line for years to come.

“If I were Google and looking to grow my Russian presence, that would be one of the options,” Uralsib analyst Konstantin Chernyshev told Reuters last week. If any company has deep enough pockets and a strong enough interest in acquiring Yandex, it would be Google (the same company that acquired social search engine Aardvark last year, and dropped $3.1 billion to buyout online advertising company DoubleClick in 2007).

If nothing else, we can take solace in the fact that Yandex is actually profitable. The company earned $134 million last year on revenue of $440 million. That fact alone gives it a boost over other high-profile tech IPOs like LinkedIn, which is forecasting a net loss in 2011. Tech may indeed be in another bubble, but companies like Yandex should be able to weather the turmoil when the bubble pops. It’s all about the rubles, after all, and Yandex has proven it can pull them in.

Related

TECHNOLOGY IPO CALENDAR


The unofficial tech IPO calendar for 2011


SAY ‘NO’ TO SOCIAL NETWORKING


3 reasons NOT to invest in LinkedIn IPO


EAT YOUR HEART OUT, ZYNGA


PopCap IPO: 4 reasons to invest in the social gaming giant


THE GOOGLE OF RUSSIA


Yandex IPO: 5 reasons to invest in Yandex stock


THE FACEBOOK(S) OF CHINA


RenRen IPO’s biggest hurdle might be PengYou

TAKING ON THE ‘YOUTUBE OF CHINA’


Tudou IPO: Is Tudou stock a buy?

LinkedIn IPO: 5 things you don’t know about the professional social network

There aren’t many sectors hotter than the social networking space to date, and investors gave LinkedIn Corp. (NYSE:LNKD) stock a big thumbs up when the company went public yesterday. Here are five things you probably didn’t know about the professional social networking site:

1) Multiple revenue streams. One of my favorite aspects of LinkedIn’s business model is the fact that it’s not solely dependent on advertising. In fact, more than half of the revenue the company generated last year came from other sources. Here’s the breakdown:

The site’s paying members are typically recruiters who want more in-depth access to LinkedIn’s user database.

2) LinkedIn is global. It’s tempting to think of LinkedIn as an American phenomenon, but the fact of the matter is, the site’s gone global. It’s currently got 90 million users from more than 200 countries. That’s a small fraction of Facebook’s 500-700 million users, but it’s definitely not a small number. There is, however, some serious debate over how many of those users are “active” (see my post: 3 reasons not to invest in LinkedIn IPO for more). According to the company’s S-1 filing, they’re adding new members at a rate of 1 per second.

3) First of its kind. It’s hard to believe, but there hasn’t been a major social networking site in the U.S. that’s went public. The biggest social networking sites including MySpace, Bebo and Orkut were bought out before they had the chance to IPO. The rest (i.e. Facebook, Foursquare and Twitter) have remained private as they’ve had little trouble finding funding from private sources. IPOs are, after all, extremely costly, and public companies are required to abide by strict accounting standards that greatly ramp up the cost of doing business.

4) Growth through acquisition. In its IPO filing, LinkedIn said it plans to use the proceeds to expand the business, and – possibly – to acquire existing companies. No one knows what type of companies LinkedIn might acquire, but the prospect is promising. It’s clear LinkedIn needs to do more to keep existing customers coming back (something they’re working towards in-house with the release, for example, of the “LinkedIn Today” news feature). The right buyouts could boost the site’s reach immediately. And one way of doing that is by targeting overseas social networking sites that cater to similar demographics. It’ll be interesting to see how the company decides to deploy its new war chest full of cash.

5) Innovation Station. LinkedIn isn’t shy about trying out new products and features. The site has opened itself up to third-party developers, and there are currently 20 third-party applications available – from Amazon’s Reading List App to a LexisNexis Lawyer Ratings app. As I mentioned earlier, the site’s also launched a social news feature called LinkedIn Today and a Q&A platform is up and running on the site. Users can also tap into apps that allow online collaboration, PowerPoint presentations and more, all with the goal of turning LinkedIn into an extension of one’s work life.

Related

TECHNOLOGY IPO CALENDAR


The unofficial tech IPO calendar for 2011


A SMALL COMPANY AMONG GIANTS


Millennial Media IPO: The future of mobile advertising?


SILVER’S FIRST TRUE TEST


How low will silver prices go?


THE GOOGLE OF RUSSIA


Yandex IPO: 5 reasons to invest in Yandex stock


BETTER THAN CRUDE?


How to invest in natural gas

TAKING ON THE ‘YOUTUBE OF CHINA’


Tudou IPO: Is Tudou stock a buy?

LinkedIn IPO date and stock price set: Is it a buy?

LinkedIn is set to IPO on the NYSE on Thursday, May 19, 2011, under ticker symbol “LNKD.” It will be the second social networking site to start trading on the Big Board this month after the so-called “Facebook of China,” RenRen.com (NYSE:RENN), went public on May 5.

It appears LinkedIn has piqued investor interest. The company raised its offer price $10 yesterday from a range of $32-$35 per share to $42-$45 per share. LinkedIn, which targets white-collar professionals, has displayed some impressive growth. Revenue doubled last year to $243 million and membership ballooned around the world to more than 90 million.

Nonetheless, some investors are worried we’re in the midst of Tech Bubble 2.0, and I’m inclined to agree. Here are three reasons to consider holding out before you buy shares in LinkedIn:

1) LinkedIn’s peers. There aren’t many social networking sites that are public, so we don’t have much to go on. In fact, there’s really just one other social networking Web site that trades on U.S. stock exchanges, and that’s China’s RenRen.com. RenRen IPO’d on May 5, and shot up 29 percent in its first day of trading. Not even two weeks later, investors have pushed the stock down 30 percent to $12.73 – a figure that’s below RenRen’s IPO price. If we’re looking for track records in the social networking space, here’s one that says “stay the hell away” (in the short-term, anyway).

2) Steep valuation. Consider this: LinkedIn’s latest valuation puts it at 17 times last year’s revenue. That’s a rather staggering figure when we compare it against other more established tech titans:

  • AOL, Inc. (NYSE:AOL): 1x 2010 revenue
  • Apple Inc. (NASDAQ:AAPL): 12.5x 2010 revenue
  • Google, Inc. (NASDAQ:GOOG): 6x 2010 revenue
  • Microsoft Corporation (NASDAQ:MSFT): 3.5x 2010 revenue
  • Netflix, Inc. (NASDAQ:NFLX): 6x 2010 revenue
  • Yahoo! Inc. (NASDAQ:YHOO): 17x 2010 revenue

Yahoo’s rich valuation is thanks in no small part to it’s rather cunning investments in Chinese tech companies (see my post Three reasons to buy Yahoo! Inc. (YHOO) in 2011).

3) Bad timing? Earlier this week I penned a piece titled Stock market crash looming on horizon? The gist? Darkening clouds seem to be gathering on the horizon for the broader stock market. Commodities have crumbled in recent weeks, defensive stocks including healthcare and blue chips are on the rise and inflation’s starting to cut into the pocketbooks of consumers. Shares in speculative companies like LinkedIn could get hit the hardest in the event of a major downturn in the markets.

Not buying my arguments? Convinced LinkedIn stock is going to start strong and shoot for the moon? Check out my post 3 reasons to buy LinkedIn shares during IPO, which outlines the bullish case for the company. If you’re looking for more reasons to stay away, I can indulge you there as well with my post: 3 reasons NOT to invest in LinkedIn IPO.

The fact of the matter is, we’re in uncharted waters. No one’s quite sure how investors will react to the debut of an U.S.-based social networking site. That might be what scares me the most. Investing isn’t about having a “hunch” a stock will do well; it’s about picking companies with strong profits and even better prospects for the future. LinkedIn’s got great prospects, but it’s clear we won’t be seeing profits anytime soon. That makes buying shares a gamble – particularly on LinkedIn’s first day of trading.

Related

TECHNOLOGY IPO CALENDAR


The unofficial tech IPO calendar for 2011


LOOKING FOR LOVE IN CHINA


Jiayuan.com IPO: 3 reasons to invest in Chinese dating site


DEMAND MEDIA’S BOWS DOWN TO PANDA


Will Demand Media’s (DMD) stock recover from Google shock? Absolutely


THE GOOGLE OF RUSSIA


Yandex IPO: 5 reasons to invest in Yandex stock


THE FACEBOOK(S) OF CHINA


RenRen IPO’s biggest hurdle might be PengYou

TAKING ON THE ‘YOUTUBE OF CHINA’


Tudou IPO: Is Tudou stock a buy?

3 reasons NOT to invest in LinkedIn IPO

The social networking site for professionals and job seekers, LinkedIn.com, has valued itself at $3 billion in the run-up to its IPO. That’s about 12 times 2010 revenue (per Reuters), and that makes it a bargain compared to some of the Chinese tech IPOs we’ve seen of late. RenRen, for instance, is trading at 76 times revenue. The relatively low valuation for LinkedIn has some investors second guessing big bets on the company’s prospects for growth. Here are three reasons why it might be a good idea to park your cash somewhere other than in the LinkedIn IPO:

1) Niche audience. LinkedIn caters to a very specific subset of the population: job seekers and professionals eager to network. While that makes the site a great marketing tool for recruiters and companies eager to fill white collar jobs, it also automatically puts a cap on the site’s potential audience. Since companies like Twitter, Facebook and RenRen don’t target specific niches, their long-term growth prospects aren’t nearly as limited.

2) Not profitable yet. Don’t look for LinkedIn to start posting profits this year. The company’s said as much in its IPO filing: “We expect revenue growth rate to decline, and as we continue to invest for future growth, we do not expect to be profitable on a GAAP basis in 2011.” LinkedIn plans to ramp up hiring and re-invest in rolling out new features on the site instead. If those features are successful in substantially boosting traffic and membership on the site, profits could be just around the corner … That is, however, a big “if” (just as it is for Facebook, Twitter and RenRen). Albert Babayev as SeekingAlpha believes the company’s revenue multiple will fall below where it is today (to 7x or maybe even 5x) in the coming years. That means it’ll be worth less than what it’s trading for even now on private exchanges.

3) Plateauing growth. Pageviews at LinkedIn appear to have flat-lined since the start of the year:

Source: Alexa.com

Babayev actually points out an even more damning fact: the vast majority of LinkedIn’s members rarely ever visit the site. “LinkedIn has 1% of total Facebook visits, while boasting to have an equivalent of 16% of Facebook users,” he writes based on stats from Compete.com. It’s clear then that LinkedIn is far less sticky (about 15 percent less) than Facebook. Squeezing more dollars our of the same audience is a daunting task.

Despite these arguments against investing in a LinkedIn IPO, I’m still fairly bullish on the company. It’s model isn’t nearly as reliant on advertising as that of rivals like Facebook and Twitter. Last year, LinkedIn generated the bulk of its revenue (41 percent) by selling job listings on the site. The rest came from a mix advertising (32 percent) and premium subscriptions (27 percent). Multiple revenue streams ensure the company will have cashflow to fund new features and grow it’s membership base. In the end, though, investors will have the last say, and I imagine they’ll welcome the stock with open arms. A year or two down the road, LinkedIn’s future looks a lot more murky.

LinkedIn IPO Date: A specific date has not yet been set, but it will likely be within two weeks.

Related

TECHNOLOGY IPO CALENDAR


The unofficial tech IPO calendar for 2011


LOOKING FOR LOVE IN CHINA


Jiayuan.com IPO: 3 reasons to invest in Chinese dating site


DEMAND MEDIA’S BOWS DOWN TO PANDA


Will Demand Media’s (DMD) stock recover from Google shock? Absolutely


THE GOOGLE OF RUSSIA


Yandex IPO: 5 reasons to invest in Yandex stock


THE FACEBOOK(S) OF CHINA


RenRen IPO’s biggest hurdle might be PengYou

TAKING ON THE ‘YOUTUBE OF CHINA’


Tudou IPO: Is Tudou stock a buy?

RenRen IPO: 5 things you don’t know about ‘China’s Facebook’

RenRen’s IPO date has arrived. Shares in the “Facebook of China” will begin trading today (May 4, 2011) on the NYSE under ticker symbol “RENN.” The whole affair has the feel of being backstage before a Justin Bieber concert, which is to say traders are giddy.

Finally, we’ll get to sink our hands into a genuine social networking stock. Better yet, it hails from behind the Great Firewall in the world’s largest Internet market. Expect fireworks.

While the mainstream media has flooded the tubes with news stories on RenRen, here are five things you might not have known about the “Facebook of China”:

1) Pony up for those brand pages. RenRen may have copied the master (Facebook) in the beginning, but it’s taken a slightly different tact toward advertising. Rather than giving away “fan pages” to businesses for free, RenRen charges companies upwards of $90,000 to launch branded “mini-sites” on RenRen. That’s one way to solve the revenue problem that’s hanging over Facebook’s head.

2) It’s messy behind the scenes. News broke yesterday that one of RenRen’s audit-committee chairmen was stepping down after alleged financial fraud at a different Chinese tech company where he serves as CFO. Perhaps that’s not a big deal (since it stems from allegations at a different company), but this might give you pause: RenRen’s had trouble spitting out just how many users the site has. First, they claimed user growth of 29 percent during Q1. A week and a half later, the social networking site backpedaled, saying growth was actually more like 19 percent. Hmmm… As it stands right now, RenRen claimed to have 117 million activated users as of March 31, 2011. Take it for what it’s worth.

3) Strength in numbers. The PRC is home to the world’s largest Internet market with more than 420 million Web users, according to Internet World Stats. That’s nearly twice the number of surfers in the U.S., and China’s Internet penetration rate is just 31 percent! Compare that to the U.S., where 77 percent of the population has Web access. Clearly, the Internet growth story moving forward is going to be told on the other side of the Pacific.

4) Coupons anyone? RenRen operates a Groupon-style deal of the day clone at Nuomi.com. Launched last summer, Nuomi’s already a Top 200 site in China (per Alexa), but it does face stiff competition. The Xinhua News claims there are already more than 2,600 group buying websites in the PRC. Fortunately, RenRen’s IPO warchest might help the company market Nuomi. Execs appear more than willing to do just that as they announced plans to spend more than $30 million in advertising the site in February. They won’t lose the Groupon war without a fight.

5) Multiple social networks in one. Early in April, RenRen launched a second social networking site dubbed “Jingwei.” Jingwei targets professionals who are interested in networking opportunities. If it catches on, we might not have the opportunity to invest just in the “Facebook of China” but the “LinkedIn of China” and the “Groupon of China,” too – all in one stock. What more could you ask for in a country where only the privileged few have access to shares in Facebook, Twitter, Groupon and LinkedIn?

Related

THE FACEBOOK OF CHINA?


3 reasons TO invest in the RenRen IPO


LOOKING FOR LOVE IN CHINA


Jiayuan.com IPO: 3 reasons to invest in Chinese dating site


WILL RENREN FLOP?


5 reasons NOT to invest in the RenRen IPO


THE GOOGLE OF RUSSIA


Yandex IPO: 5 reasons to invest in Yandex stock


THE FACEBOOK(S) OF CHINA


RenRen IPO’s biggest hurdle might be PengYou

TWEETING IN CHINESE

A Sina Weibo IPO could be in the works as China’s Twitter moves to Weibo.com

Facebook + Baidu vs. Renren: Let the war begin (BIDU)

The ante’s been upped in China’s social networking wars. Facebook plans to partner with China’s largest search engine Baidu.com, Inc. (NASDAQ:BIDU) to build a social networking site from the ground up. The move would smuggle Facebook behind the Great Firewall – a place where few other foreign social networks are able to tread.

Shares in BIDU rose nearly 5 percent in pre-market trading on the news although it could be a while before Facebook.cn becomes a reality. “If there is a deal, it must still make it over some imposing regulatory hurdles in China, and it will attract some attention from Capitol Hill,” writes Gady Epstein at Forbes.

Epstein’s optimistic the deal will ultimately work, though, as Zuckerberg appears “fully committed to make the kinds of concessions to do business in China that did not come so easily for Google.”

China’s social networking market is particularly brutal. Renren.com claims 160 million active users in the PRC, and it got its start as a Facebook clone. It was such a perfect clone that it matched Facebook’s DNA down to the chromosome – going so far as calling itself “A Mark Zuckerberg Production” on its homepage in the early days.

Everything that Facebook does, Renren does, too. The site launched in 2005, and spread virally across college campuses in China before eventually opening up to the public (just as Facebook did one year earlier). It recently launched Renren Places, a “Like” button and a Groupon-style deal-of-the-day feature. In many ways, then, Facebook’s biggest competitor in China will be itself, as it will need to find a way to differentiate itself from Renren.

That won’t be easy. Although Renren closely mirrors Facebook’s functionality, the site’s also started launching its own innovations from streaming music services to paid brand pages which operate like mini-sites on Renren.com. Some reports indicate Renren is charging as much as $90,000 for its customizable brand pages.

Renren could also generate a huge warchest when it moves ahead with a planned IPO. The company appears to be diversifying in the run-up to that IPO, too. Just last week, I wrote about Renren’s launch of a LinkedIn/Quora clone dubbed Jingwei.

Clearly, Zuckerberg has his work cut out for him. But a high-profile partnership with Baidu should give Facebook plenty of marketing clout and – just as importantly – a decent working relationship with China’s ruling elite. Both are requirements if Facebook hopes to challenge Renren.

Related

TWEETING IN CHINESE


A Sina Weibo IPO could be in the works as China’s Twitter moves to Weibo.com


HOW NOT TO USE WEIBO


DangDang (NYSE:DANG) founder labels Morgan Stanley ‘motherf**kers’


SEARCHING YOUR WAY ACROSS THE WORLD’S LARGEST INTERNET MARKET


3 reasons to buy Baidu stock (BIDU) even at record levels


THE OTHER FACEBOOK


RenRen readies for IPO by launching second social networking site, cloning LinkedIn


TOO MUCH OF A GOOD THING IS GREAT


3 more reasons to invest in a Facebook IPO

THERE’S MORE THAN ONE WAY TO DOMINATE GAMING


Is Rekoo China’s Zynga?

LinkedIn IPO just got sweeter

Linkedin.com – a social networking site for professionals – is trying to sweeten the pot before the company’s IPO by adding a social news function to the site. Dubbed LinkedIn Today, the news aggregating service works by pulling in links to articles and blog posts a user’s connections have shared. The theory goes that the news your business associates are reading is probably the same sort of news you’re interested in reading, too.

The gambit is well-timed to boost traffic to a site that’s already the 12th most-visited site in the U.S. (per Alexa). More traffic = more advertising revenue and that should help drive up investor interest before the company’s IPO.

[Related: 3 reasons to buy LinkedIn shares during IPO]

As of the end of 2010, LinkedIn had more than 90 million registered users and attracted about 65 million unique users to its site each month. Facebook, by comparison, has more than 500 million users, and Twitter claims 190 million. If LinkedIn Today catches on, it could significantly drive up pageviews and the amount of traffic the site receives.

Right now, LinkedIn Today is still in beta, and it’s not readily apparent when you log in. You’ve got to hover over “More” in the site’s nav bar and click “News” to get to it, but it’s easy to envision that the feature could get integrated with the site’s landing page when users log in. If the feature gets more prominent play on the site, it very well could give professionals a reason to return more frequently.

[Related: The unofficial tech IPO calendar for 2011]

LinkedIn itself warned that a “substantial majority” of its members don’t visit the site on a monthly basis in its IPO filing. That means there are a lot of dormant LinkedIn profiles out there. After all, the site’s appeal is strongest for job-seekers, and the happily employed have little reason to spend time networking on Facebook, Twitter AND LinkedIn. Still, LinkedIn appears to be trying to re-brand itself as something more than a glorified networking hub for the unemployed.

In unveiling the new feature (and a number of other tools), Jeff Weiner, LinkedIn’s CEO, said he wants the site to become users’ “professional profile of record” – one that helps people who are hunting for jobs and helps people perform their existing jobs.

Related

WEIBO IPO?


Will we ever see a SINA Weibo IPO?


IPO CALENDAR


The unofficial tech IPO calendar for 2011


THE OTHER FACEBOOK


Five reasons to invest in the RenRen.com IPO


I WANT IN


How to buy stock in private companies


ROCK ON GROUPON


Groupon CEO is a weird guy with good advice

WHAT’S THE POINT?


Why invest in silver?

3 reasons to buy LinkedIn shares during IPO

When I first heard about LinkedIn floating a stock offering I had to repress the urge to yawn. But digging deeper into the company’s finances, traffic, niche and prospects has made me reconsider. Here are three reasons to consider buying stock in LinkedIn’s upcoming IPO:

1) Traffic. We’ve heard all the enormous numbers bandied about: LinkedIn has 90 million profiles, according to Reuters. That’s a hell of a lot less than the 500 million+ users on Facebook, but it’s still a lofty number. What most impresses me about the site’s traffic, though, is its steady growth. Here’s a chart from Alexa.com showing the growth in pageviews at LinkedIn over the past two years:

That’s the sort of growth any company in any industry would like to see, and it’s actually got LinkedIn ranked No. 13 in Web traffic in the U.S (again per Alexa).

2) Demographics. LinkedIn has the sterile feel of a watercooler conversation at the office. It caters to professionals. That may make it a bit less sexy than an IPO along the lines of say a RenRen.com or a Yandex.ru, but it’s actually a rather brilliant niche. It’s the sort of place where businesses are willing to pay to get access to talent pools, promote their operations and hire brilliant engineers away from competitors.

3) Not just talent pools, LinkedIn is a cash pool. Sales at LinkedIn have more than tripled from 2007 to 2009. Through Q3 of 2010, LinkedIn had $161.4 million in net revenue. That was good enough for profits of $1.85 million, per their S-1 filing. The site makes its money by selling ads and “paid subscriptions” to recruiters who are looking to fill positions for other companies. After focusing its initial ad sales efforts on big budget advertisers, LinkedIn has FINALLY launched a self-service ad platform that gives small businesses the ability to advertise on the site. Advertisers can harness the site’s information-rich profiles to display ads to target viewers by job title, company name, or LinkedIn group.

If LinkedIn can maintain its growth rate and convince small businesses of the effectiveness of the company’s ads, it just might be worth that $3 billion valuation. If nothing else, it’ll be a fun stock to daytrade.

Related

IPO CALENDAR


The unofficial tech IPO calendar for 2011


DEMAND MEDIA


Demand Media: Dead on arrival?


GOOGLE ME?


How to get a job at Google Inc. (NASDAQ:GOOG)


DEMAND MEDIA


Three reasons to buy stock in Demand Media’s IPO (DMD)


TWEET TWEET


Twitter’s revenue growth on par with Facebook’s

THUMBS DOWN


3 reasons NOT to invest in Groupon’s IPO

The unofficial tech IPO calendar for 2011

After a few terrible years for IPOs, some exciting technology companies look like they’re ready to step up to the IPO plate in 2011 or 2012. Here’s an unofficial list of 23 tech companies that – according to rumors from the Wall Street Journal and TechRice among other sources – might go to market this year or next:

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small 58.com IPO? China’s for-profit version of Craigslist.org, 58.com’s got a robust user base. A recent browse through the site’s classified ads in Beijing showed more than 1.2 million listings for people looking for roommates – and that’s just in one city! The site ranks 34th in online traffic in China, according to Alexa.com.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small 360buy.com IPO? The third-largest online retailer in China, 360buy.com just secured a nice chunk of change from Wal-Mart. They got more than $500 million in all. As I wrote previously, 360buy.com controls 2.5 percent of the e-commerce market in China. That may not sound like much, but that’s more than 3.5 times the e-commerce marketshare enjoyed by competitor China Dangdang, Inc. (NYSE:DANG).

***

star-icon-smallstar-icon-smallstar-icon-small Demand Media IPO? A content factory that uses an army of freelancers to churn out “How To” articles, Demand Media has turned the written word into a commodity on eHow.com. All told, eHow produces enough text to fill more than four English language Wikipedia’s every single year. And their so-called “evergreen” articles aren’t pegged to specific dates, so they’ve got a very long shelf-life of search-engine friendly content that’s perfectly suited for advertisements.

Update: Demand Media IPO’d on Jan. 26, 2011 under ticker symbol DMD. Check out my latest post on the company: Will Demand Media’s (DMD) stock recover from Google shock? Absolutely.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Facebook IPO? I can’t say much that hasn’t already been said about Facebook, except this: they’re the only Web-based company in U.S. that’s positioned to truly challenge Google in the coming years. As they expand into search, virtual goods, e-commerce and mobile, Facebook seems to be taking over the internet. Indeed, the site currently accounts for 25 percent of ALL pageviews in the U.S. Even with a $75 billion+ valuation, Facebook still looks cheap to me.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Groupon IPO? Groupon’s found the holy grail of online marketing: a simply way to marry coupons and local businesses. To use it, just give Groupon your email address and they send you a daily offer from a local business. If you like the offer (which is often a coupon or gift card that’ll save you 50 percent or more at a local restaurant, hobby shop, etc.), you can buy the coupon, print it out and redeem it anytime before the expiry date. The company’s already rejected a $6 billion buyout offer from Google, and they’re in the early stages of expanding into China. The only problem? Google’s got Groupon on their hit list now, and an all-out war is probably in the making.

***

star-icon-smallstar-icon-smallstar-icon-small Hulu.com? A streaming video site with backing from media heavyweights like News Corp. (NASDAQ:NWSA), Walt Disney (NYSE:DIS), and NBC Universal, Hulu claims to be operating at a profit with 2010 revenues around $260 million. The company’s biggest competitor is streaming giant Netflix, Inc. (NASDAQ:NFLX), which now has a market cap of $9.6 billion.

***

star-icon-smallstar-icon-smallstar-icon-small Jiayuan IPO? The leading online dating site in China, Jiayuan’s the 55th most-visited site in China, and it boasts at least 25 million members. The company makes money by charging for memberships (about $6 a month for a “Diamond Membership”), selling virtual currency and other romantic add-ons. Jiayuan has attracted capital from New Oriental Education & Technology Group (NYSE: EDU) among other investors.

Update: Jiayuan shares started trading on May 12, 2011 under ticker “DATE” on the NASDAQ. Check out my latest post on the company: Jiayuan.com IPO: 3 reasons to invest in Chinese dating site.

***

star-icon-smallstar-icon-smallstar-icon-small LinkedIn IPO? A social networking site for professionals, LinkedIn boasts more than 90 million members from around the world. The company lacks the sex appeal of some of the other tech IPOs on the docket, but it does seem like its network might be easier to monetize than, say, Twitter, since it can capitalize on hiring solutions, advertising aimed at professionals and premium landing pages.

Update: LinkedIn IPO’d on May 19, 2011 under ticker symbol “LNKD.” Check out my latest post on the company: 3 reasons NOT to invest in LinkedIn IPO.

***

star-icon-smallstar-icon-smallstar-icon-small LivingSocial IPO? The biggest and most well-known Groupon competitor, LivingSocial offers daily deals from local and national retailers. LivingSocial got a big boost when it announced that Amazon.com, Inc. (NASDAQ:AMZN) was investing $175 million in the company. Soon after, LivingSocial offered its members a $20 Amazon gift card for just $10, and they netted both companies more than $13 million up front in the deal.

***

star-icon-smallstar-icon-smallstar-icon-small Nuomi IPO? An ultra-deep discount coupon site, Nuomi’s fighting for attention in what will soon be a very crowded market. Still, they’ve got decent ownership in Oak Pacific – the parent company of “China’s Facebook”: RenRen. And they’ve got a decent idea: do as Groupon does. The company sells coupons online for a limited time. At least one theater owner who partnered with Nuomi was thrilled with the results: “I’d say this is a miracle,” producer Lei Zile told the Global Times last July. “I’ve talked to older producers about this and they all said it was a miracle in the history of stage plays. 100,000 tickets were sold in one day. You could call it encouraging.”

***

star-icon-smallstar-icon-smallstar-icon-small Pandora IPO? An online music streaming site, Pandora grew out of the Music Genome Project, which attempts to categorize music based on more than 400 variables. Using that information, Pandora can build “custom” radio stations after you’ve entered a song or band that you like. The site’s enjoyed a big surge in popularity with wider-spread adoption of smartphones that allow streaming music anywhere, anytime. Despite the fact that Pandora shelled out more than $30 million in royalties in 2009, the company still managed to make its first profit that year, netting some $50 million. In 2010, profits were estimated to be around $100 million largely on the strength of premium ad-free streaming accounts and partnerships with car manufacturers that are installing Pandora direct from the factory.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Qunar IPO? An online travel booking site in China, Qunar’s Web traffic is pacing Ctrip.com’s (NASDAQ:CTRP). Both companies operate in the same niche, but Ctrip’s more well known in the West since its IPO came in 2003. Since 2003, shares in Ctrip have risen more than 750 percent. Competition in the sector seems to be heating up as Tencent Holdings, Ltd. (HKG:0700) recently invested in 17u.com, another Chinese travel site that’s currently a distant third behind Ctrip and Qunar.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Renren IPO? A glaring example of the copyright issues that plague China, when RenRen.com launched in 2005 as XiaoNei.com, the site looked like it was an official Facebook product. It even identified itself as “A Mark Zuckerberg Production” at the bottom of its pages. After getting bought out by Oak Pacific Interactive in 2006, the company’s since tried to carve its own niche – and its done well. RenRen.com currently has more than 160 million registered users in China, and it’s the country’s 16th most-visited site.

Update: RenRen went public on May 5, 2011. Shares have collapsed more than 30 percent since then. Check out my latest post on RENN: RenRen IPO: 5 things you don’t know about ‘China’s Facebook.’

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Sunity IPO? A Chinese version of Zynga, Sunity Online Entertainment Ltd. makes Web-based games and will soon start launching mobile apps, according to the AP. The company racked up $9.54 million in revenue in 2010, up from $8.25 million in 2009. Sunity generates 52 percent of its revenue from Qihang (QHG) – a subscription-based cards and chess game, according to Gaming-Hub.com. Another 8 percent of the company’s revenue comes from Han Dynasty Game (HDG) – a free Chinese mythology role-playing game that makes money off the sale of virtual goods.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Skype IPO? Skype’s VoIP services offer businesses and individuals a free or low-cost way to make international calls, host video conferences and shares files online. With the company’s recent $100 million acquisition of mobile video streaming service Qik, it’s clear Skype’s getting aggressive about making a push into the smartphone market.

Update: Microsoft acquired Skype on May 10, 2011 for $8.5 billion.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Taobao IPO? It’s unclear whether or not Taobao will IPO in 2011 or 2012, but it is, hands down, my favorite stock on this list. Taobao controls 75 percent of the e-commerce market in China with it’s psuedo-eBay-style site. There, consumers can buy products from other consumers or businesses at auction or at set prices, although auction-style buying seems to have fallen out of favor on the site. Credit Suisse analysts expect the e-commerce market to more than quadruple in China by 2015, and Taobao will easily be the biggest beneficiary of those gains. They seem to have seen the writing on the wall, too, as the company’s investing $3 billion to $4.5 billion into a warehouse network that will make shipping throughout China more efficient.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Taomee’s 61.com IPO? A Chinese social networking site aimed at children and parents, 61.com has some 20 million users ages 6 to 14, and Forbes reported revenue projections of more than $30 million in 2010. The subscription-based site lets kids hang out in virtual worlds (the Seers for the boys and the Moles for mixed-gender users), and parents are invited, too.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Tudou IPO? While they may be playing second fiddle to Youku.com, Inc. (NYSE:YOKU), video streaming site Tudou.com gets nearly as much traffic. The site’s ranked by Alexa.com as the 11th most-visited Web site in China. Youku.com’s ranked as the 10th most-visited site. Youku’s spectacular November IPO could foreshadow another buying frenzy in Tudou even though its unclear when or how either company will get profitable.

Update: Despite an ongoing legal battle between Tudou’s CEO and his ex-wife, the company appears to be moving closer and closer to an IPO. Check out my latest post on the company: Tudou IPO: Is Tudou stock a buy?

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Twitter IPO? Microblogging site Twitter still isn’t profitable, but it looks like it’s getting serious about making money after staggering valuations put the company’s market cap around $3.7 billion. Twitter appointed its former COO Dick Costolo as CEO late last year, and Costolo’s tasked with ramping up revenues. A report out yesterday by online research firm e-Marketer Inc. estimates the company will generate $150 million in ad revenues in 2011 and $250 million by 2012. I’ve also blogged in the past about what I see as Twitter’s secret key to making money.

***

star-icon-smallstar-icon-smallstar-icon-small VANCL IPO? An up-and-coming online clothing retailer in China, Vancl.com’s got excellent pedigree in site founder Chen Nian who sold his last project, Joyo.cn, to Amazon. Vancl.com’s focus on clothing has helped it capture nearly 30 percent of all online clothing sales in China, and the company expects its warehouse space to triple by the end of the year. Last year’s sales at Vancl were expected to be up more than 300 percent, according Businessweek.com.

***

star-icon-smallstar-icon-smallstar-icon-smallstar-icon-small Yandex IPO? My second-favorite stock on this list, Yandex.ru is likely among the least well-known of the stocks, too. Expect to hear a lot more about Yandex if the company IPOs on the NASDAQ. The leading search engine site in Russia, Yandex claims revenue spiked by 43 percent to $410 million last year. Google holds the No. 2 slot in Russian search engine usage and the American search company posted revenue of some $69 million in Russia in 2009. Yandex.ru is the most-visited site in Russia and the 25th most-visited site in the world, per Alexa.

Update: Yandex IPO’d on May 24, 2011. Check out my latest: Yandex IPO: 5 reasons to invest in Yandex stock.

***

star-icon-smallstar-icon-small Zhenai IPO? A Chinese dating site, Zhenai.com claims more than 26 million registrations as of August 2010. While the site gets far less traffic than its biggest competitor Jiayuan, Zhenai adds a human touch to the matchmaking process by having trained matchmakers help users find the best possible matches.

***

star-icon-smallstar-icon-small Zynga IPO? An online game maker, Zynga’s most famous for its iPhone and Facebook apps Farmville and Cityville. The company boasts a market cap of $5.8 billion on SharesPost. Sound like a lot? At least Zynga’s not having much trouble making money. Zynga likely generated revenue of more than $500 million last year, Lou Kerner, an analyst at Wedbush Securities, tells Dealbook. That’s up from about $300 million in 2009. That’s not bad, especially since Kerner estimates the company has profit margins of some 20 percent.

Related

EAT YOUR HEART OUT, ZYNGA


PopCap IPO: 4 reasons to invest in the social gaming giant


A START-UP AMONG GIANTS


Millennial Media IPO: The future of mobile advertising?


LOOKING FOR LOVE IN CHINA


Jiayuan.com IPO: 3 reasons to invest in Chinese dating site


THE GOOGLE OF RUSSIA


Yandex IPO: 5 reasons to invest in Yandex stock


THE FACEBOOK(S) OF CHINA


RenRen IPO’s biggest hurdle might be PengYou

TAKING ON THE ‘YOUTUBE OF CHINA’


Tudou IPO: Is Tudou stock a buy?







Zecco Forex Online Foreign Exchange Trading

Killer Articles

Top 10 best gold and silver ETF funds

Here’s a look at the Top 10 best gold and silver ETFs that trade on major U.S. exchanges. We’ve ranked them by volume, as some of the niche ETFs in the precious metals market are so... Read on.

3 reasons NOT to invest in Groupon’s IPO

An IPO date hasn’t been set, but here are three big warning signs you might want to consider before investing in Groupon’s stock... Read on.

From start-up to titan: The unofficial tech IPO calendar for 2012

From Facebook to Twitter to Groupon, the planned tech IPOs in 2012 could be among the most exciting string of new public companies... Read on.

How to invest in water stocks

Often overlooked as a commodity, water supplies could become increasingly critical as emerging economies around the world improve their diets and demand more agricultural resources for the production of meat... Read on.

World’s largest economies in 2050 will look very different

India’s rapid ascent to economic supremacy will be driven by a surging working age population, which will grow more than 40 percent between now and 2050... Read on.

How to invest in cotton stocks

If you’d like exposure to cotton markets without delving into futures and options contracts, a handful of cotton ETNs and cotton-related stocks are available... Read on.

How to buy Chinese Yuan

The Chinese yuan or renminbi has risen about 5 percent a year over the past five years, and some investors argue that China’s currency is still undervalued by 40 percent. If the dollar suffers ... Read on.

Five cheap franchises to start with less than $10,000

Franchises are so ubiquitous we often don’t realize we’re shopping at one. From McDonald’s to Hampton Inns and doggie day cares to campgrounds, they’re literally everywhere. All told, franchises account for 10.5 percent of all businesses in the U.S, and they... Read on.

Why invest in silver?

Ask 10 people why you should invest in gold and silver, and you’ll probably get 10 different answers – many of which will be accompanied by a shrug. Most investors don’t understand the motivation for holding gold or silver bullion. Nonetheless, it’s been difficult to ignore... Read on.

How to Invest in Copper

Copper isn’t as glitzy or glamorous as gold or silver, but in many ways it feels safer. Since copper is regularly used in electronics, it’s consumption per person (particularly in the developed world) has been on the rise for decades. So how does one invest in copper? Read on.