Linkedin valued at $9 billion. 10 years on - Are they at it again?

mr_fishbulb

Yesterday was Linkedin's first day of trading on the secondary market after their IPO this week. Shares more than doubled - http://online.wsj.com/article/SB10001424052748704816604576333132239509622.html

I'm no expert at valuing companies, but $9 billion seems a little excessive for LinkedIn.

The outsize demand for the stock of an Internet company that is growing rapidly but had a profit of $15.4 million last year is the latest sign of the surge—some say bubble—in Web valuations even as the broader U.S. economy struggles to rebound from the recession.

Anyone else worried about another Tech bubble?

rfowler

What a load of rubbish.... If this does not a prove bubble i don't know what does

bendix

I suspect there is a bubble in dotcom type stocks, yes, but I don't think there is a bubble in tech stocks. That is a key difference to ten years ago.

The very nature of internet site IPOs is frothy, and ten years ago the crash was caused by ridiculous valuations of these frothy stocks. I strongly suspect most of today's listings have better fundamentals than Pets.com etc, but they don't justify such high valuations in my opinion.

However, I don't think it will be a general tech crash. Look at the real tech companies such as Apple, Cisco etc . . they are very solid, have excellent earnings and are exceedingly well-placed to grow more.

If you want to invest in dotcom, don't invest in websites - invest in the shares that will grow with the intranet ... IT infrastructure stocks.

rfowler

bendix wrote: »

I suspect there is a bubble in dotcom type stocks, yes, but I don't think there is a bubble in tech stocks. That is a key difference to ten years ago.

The very nature of internet site IPOs is frothy, and ten years ago the crash was caused by ridiculous valuations of these frothy stocks. I strongly suspect most of today's listings have better fundamentals than Pets.com etc, but they don't justify such high valuations in my opinion.

However, I don't think it will be a general tech crash. Look at the real tech companies such as Apple, Cisco etc . . they are very solid, have excellent earnings and are exceedingly well-placed to grow more.

If you want to invest in dotcom, don't invest in websites - invest in the shares that will grow with the intranet ... IT infrastructure stocks.

So good points, but you can't put Cisco and Apple in the same brackets as Linkedin.

Apple & Cisco has a physical product they have built there names over years.... what physical asset does Linkedin?

At the end of the day its WEBSITE!!!!!!

bendix

rfowler wrote: »

So good points, but you can't put Cisco and Apple in the same brackets as Linkedin.

Apple & Cisco has a physical product they have built there names over years.... what physical asset does Linkedin?

At the end of the day its WEBSITE!!!!!!

Ummmmm, yes, I think that was precisely the point I was making.

God help us.

yorkiebar

Ridiculous valuation, house of cards. As above though, it's limited stocks with the fantasy valuations unlike dotcom times where the whole tech sector was away with the fairies.

sabretoothtigger

Cisco is valued at about 10 years earnings or about 58x cheaper then this company.

Could just be a sign of a very young company with alot of potential, also its inline with Facebook valuation I think. So its acting as a proxy maybe, also groupon

If they (have) spread to Asia and China it might be justified but if its english based only it'll not do well enough. Dont underestimate the power of advertising especially well targetted premium stuff, thats all google is based on really in a very clever way

property.advert

Sell and pocket the cash if you have shares as the last one holding will be seriously burned with this rubbish.