Quote:
Originally Posted by dangles
How can anyone say that a company is 1000 times worth their net income? Isn’t that like paying 1000 dollars to earn 1 dollar? That isn’t a bubble, it’s a delusion. People claim the institutions stole money setting such a low offering price, but in reality they set intentionally high prices as most IPO post sales fall anywhere from 30-75% of their IPO - this was delineated in Benjamin Graham’s Intelligent Investor. What was true in the 70s is true today.
Stay away from IPO hype.
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I agree you have a point. I think the hype is in the reach they have, the amount of subscribers, they havnt been profitable but some people think with the reach tehy have they just need to figoure out how to profit off of it and can make big money.
Here's why I think their reach is overhyped. Recently in the career section of this forum someone asked if others liked linked in. A few people said yes but an overwhelming majority said I have an account but find it kinda pointless nad dno't use it.
This is the same with my freinds. We all have accounts nobody uses them much or finds much value. I do hav one buddy who's in sales who says it helps him if nothing else learn some inside info about a potential clients interests, family, etc in tern of hvaing an in but overall I think me, my friends and most people on that forum post just signed up because a coworker, parent, etc said you have to be on linked in so I think they have a lot of people signed up but I bet less than a 1/4 are avid users.
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Called bubble at 94$/share. Now its at 65$/share and 6.19billion valuation.
is this a new trend? 
