LinkedIn IPO - Second Dot Com Bubble Coming
Yesterday saw LinkedIn float on the stock market - to much surprise the stock rallyed up to US$122.70 at it's highest and closing at US$94 on its first day of trading. On looking at the stock prices one would need to question; is LinkedIn really worth this amount? At a stock price of US$94 that would make the company is worth US$8.9 billion with a profit of US$15.4 million - some how these figures don't make sense. I think it might be over valued, but only time will tell - watch out for the quarter earnings over the next 6 months, we might see a second dot com bubble coming when the market realises LinkedIn's profit performance. Financial stock experts are recommending selling the stock short side.
Sources: Yahoo Finance - LNKD