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So LinkedIn has its IPO today, and at the time of this post is trading somwhere in the 80-90 from an IPO prce of 45. This puts it at a a paltry PE ratio of 980.
Does anyone think we are in a new bubble, and if so what stage? Are we at the Netscape IPO stage, where things are getting started, but room to run, or theGlobe stage of irrational exuberance?
So LinkedIn has its IPO today, and at the time of this post is trading somwhere in the 80-90 from an IPO prce of 45. This puts it at a a paltry PE ratio of 980.
Does anyone think we are in a new bubble, and if so what stage? Are we at the Netscape IPO stage, where things are getting started, but room to run, or theGlobe stage of irrational exuberance?
I don't think it's going to last long. I just took out a 401K loan to take effect Friday - not because I needed the money, but as a bet that the market is about to tank.
LinkedIn sure looks like a good short opportunity right now doesn't it?
yes lmao.
Linkedin is a bubble. If you ask me linkedin at 94$ per share is the single riskiest stock on the market. This company is clearly in a bubble. There is no way that company is worth ~$8 billion.
Lets look at the numbers: 161 million revenue and only 1.85 million profit. Even next year they say the company won't even generate a profit due to expansion and where does the company generate its money? google adsense. Unless this company figures out new ways to generate income then it won't make much money.
I couldn't believe it went over a $100 either. I don't see anyway it will stay there. I've heard some saying we are in the second tech bubble. Not sure if that is true yet, but would be interesting. We had a housing bubble in the 80's, tech bubble in the 90's, bigger housing bubble in the 2000's, and possibly a tech bubble in 2011's.
LinkedIn sure looks like a good short opportunity right now doesn't it?
Not sure, but im staying away long or short, as this can have massive price swings in the short term. If we're in the beginning stages of a bubble, like 95-96, than shorts could be in a world of hurt.
One stock with limited float and only a small percentage of total ownership in public hands does not make a bubble. It makes for a risky investment or trade in one stock.
Tech companies are for the most part justified in their valuations. Some like Apple are printing money at insane levels. Cisco is "struggling" because they are so huge they really can't grow very fast. Still bringing in a hoard or cash monthly, with Microsoft in the same situation. Investors pile into tech to find the next big company and ofteen do overpay, but these small fry don't really affect market valuations.
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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