LinkedIn IPO makes it official - dot com bubble 2.0 is growing fast

[cbdo2007]

LinkedIn had profits of $15 Million last year. According to the current stock price, the company is worth $8 BILLION.
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LinkedIn Now has a Price-Earnings Ratio Making Pets.com Blush

By Damien Hoffman

If you were playing stocks in 1999, the LinkedIn (NYSE:LNKD) IPO should be causing flashbacks that would make a Woodstock attendee blush. The social media company has just launched the largest initial public offering since Google (NASDAQ:GOOG), but the insanity is much more intense.

If you thought LinkedIn was fully valued at $45, you’ll really hate it at over $100. Yup. I said $100. That’s where it’s trading as the momo morons keep trading this stock higher on Day 1 of trading.

With 94.5 million shares and $8 million in net income (pro rated annualized), LinkedIn earns $0.84 a share. At today’s stock price high of $122.70, that puts LinkedIn’s Price-to-Earnings ration at a mind-numbing 1460. Pets.com is blushing in its grave.

In fact, within a few hours of the initial public offering, LinkedIn (NYSE:LNKD) already made the list of The Top 10 IPO Stock Performers This Year. Whether they remain on the list is another story.

http://wallstcheatsheet.com/stocks/linkedin-now-has-a-price-earnings-ratio-making-pets-com-blush.html/

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Mean Street: IPO Buyers Are LinkedIn Stupidity.

There is only one thing that stands in the way of a successful pricing later today of LinkedIn’s IPO – and that’s common sense.

But tonight’s IPO buyers need not worry. Common sense generally has little to do with the IPO market – and absolutely nothing to do with the LinkedIn IPO.

After all, what is the sense in putting a $4.3 billion valuation on a company with slowing revenue growth and zero projected profits for 2011 or in paying $43.50 for a share that post-IPO will have a tangible book value of just of $3.38, or one-thirteenth what you just paid.

Of course, there isn’t much sense. But that doesn’t matter. Here’s what does: The belief that someone out there will pay even more for the shares.

http://blogs.wsj.com/deals/2011/05/18/mean-street-ipo-buyers-are-linkedin-stupidity/

[cbdo2007]

1. Mods....can I get this moved to the Economy forum?

Might get more responses there. Here it will just get buried. Thanks. Sorry.

[customerserviceguy]

2. LinkedIn, Facebook for people who think they're better than everyone else. n/t