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LinkedIn IPO Opens For Trading At $83, 980x Annualized P/E
And so the internet bubble is back. The market cap of LinkedIn at this price, based on 94.5 million shares is $7,843 million. Taking out $297.6 million in cash means $7,546 million in Enterprise Value. The relevant metrics are:
- Revenues (pro rated annualized): $375.6 million or Price/Revenue 20.9x
- EBITDA (pro rated annualized): $53.2 million or EV/EBITDA 141.8x
- Net Income (pro rated annualized): $8 million or P/E 980x
LNKD hits an intraday high of $92.99...
Does anyone have a chart of pets.com?
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It's bidniss, bitchez!
LinkedIn is really only useful to headhunters/job seekers. I see no value in this structure other than another administrative task to keep salesmen, on B2B sales, away making sales calls. Perhaps some networking opportunities too. Then agian I am old school.
Yahoo! was brought public by Goldman. What a pile of worthless crap that still is. Linkedin is another fleecing on the way.
GOldman behind this IPO too? What ever happened to productive capital being used to be productive? I guess when debt is considered to be debt IPOs for belly button lint smoking operations makes complete sense.
productive capital investment does not make markets 'efficient', only scams and massive malinvestment. Didn't you get the memo?
I think you underestimate how many unemployed/underemployed college educated wannabe yuppies there are.
You are spot on. I forgot the young still believe that the yuppies are the elite. I would fall into yuppy territory, but have realized that the only thing that has entitled me to is a prettier prison cell and a nicer prison bus that transports me to the prison yard shop.
Don't forget the extra ration of lube.
I'd bet more than half the people here are on LinkedIn. As others have said, it's a yuppy thing, a platform to show off one's credentials and little different from the premise of other social networks. I prefer the 80's interface chic of Bloomberg people search, and there's fat chance LNKD is actually worth $83, but hey! We live in a QEx world so the money has to go somewhere.
Ya think it's not worth $83, let alone $45, let alone anything over 15x a truly honest EBITDA basis, on a good day?
...which means is it really worth $8?
Let's just see how they further 'monetize' it, lest its non-publicly traded tenure of lower costs distort what will soon to be its much higher cost structure as a publicly traded, regulated company (with the legions of accountants, attorneys and other necessary red tape compliance cost baked in).
Wait until imbeciles buying in realize that publicly traded companies have a cost structure that in on the order of many multiples higher than non publicly-traded ones, and that the meager earnings of this POS can be vaporized faster than Goldman can go from 'conviction buy' to 'conviction sell.'
+100
You have to wonder just wtf a clunky "social" internet site, whose true operating costs can't be more than what they pay their janitor, is going to do with the $353 million they raised last night. Buy $353M worth of office supplies and servers? If it didn't make me laugh so hard, it'd be tragic.
it will all find its way into the "right" peoples pockets. this stock isnt worth 8 bucks let alone 80.
So what does it mean if I posted this particular thread from ZH on LinkedIn? A pissed off yuppy I believe.
All that QE money has to go somewhere. Social Networking is annoying. Anyone with more than 300 or so "friends" is lonely and over-compensating.
Anyway, I came across this interesting data in the 18 May 2011 "Things that make you go Hmmm..." and thought it was worth posting here for more to see.
Since Nixon closed the gold window in 1971, thus removing the last remaining check on the fourth branch of government, some interesting things have happened. You want to know why the middle class has been disappearing? Nixon is why. Although, conspiracy fans probably will say he would have been shot or something had he refused. When closing the gold window, his Treasury Secretary announced to the world something along the lines of, "while it's our currency, it's your problem." Riding an empire wave can be fun. Spending all that $$$ in Vietnam seems like such a waste. But, I digress. Here's the data from page 12.
The American dollar has lost 95.6% of its value since the creation of the Fed. Apparently, you used to actually be able to buy things with only pennies.
In 1971, the average new house cost $28,000, now it's $273,000 - inflation of 975%.
In 1971, the average monthly rent was $150, now it's $750 - inflation of 500%.
In 1971, the average cost of a gallon of gas was $0.40, now it's $3.80 - inflation of 950%.
In 1971, the average new car price was $3,430, now it's $29,200 - inflation of 851%.
In 1971, a US First Class Postage Stamp was $0.08, now it's $0.44 - inflation of 550%.
In 1971, a movie ticket ran about $1.50, now it's about $7.89 on average - inflation of 526%.
Now, here's the kicker: in 1971, the median household income was $10,300, now it's $47,000 - wage inflation of only 456%. Hmmm, indeed.
The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.
This is an excellent post.
I think it's accurate to say the dollar has lost nominal value. Actual value relative to wages is not as extreme. Were people making $50k/yr teaching in 1971? I'd like to see the same numbers compared to wage inflation, then compare the two ratios.
EDIT: Ah I see you provided that number as well. I guess my point stands. :)
It doesn't. The average worker has lost half his purchasing power in terms of housing and gasoline. This is not confidence inspiring.
And much more in taxes.. cause the more you "make", the more they can take!
And if he was wise enough to keep renting, and downsized to a car with better mileage (which not necessary has to be a much smaller car) bought two years old instead of new, he could break even.
As long as you don't factor in health/insurance costs and your kids tuition.
Now compare the average number of people having a job in 1971 and today in a household. My mother was at home. My wife is not. Wage infaltion is not 456%, but probably closer to half of this. The loss in income has been partially compensated by women now working.
It is only by having both parents working (for those who are employed) that Amerikans have been able to quadruple their debt and simultaneously lower their living standards and indebt their children, compared to the 60s and 70s.
That's how fractional reserve PonziCreditBubbleNomics banking works!
Exactly. Watch the Jones interview with Russo and see what the latter has to say about Womens Lib , 2 parents working and our old friendly family the Rockefellaaaaaaaaaaaaarghs.
Still as relevant as when it first aired:
A Mises Media Classic: Money, Banking and the Federal Reserve
Wednesday, May 18, 2011 – by Mises Institute
Thomas Jefferson and Andrew Jackson understood "The Monster". But to most Americans today, Federal Reserveis just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.
Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans-Hermann Hoppe, and Lew Rockwell, this extraordinary new film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be our first priority.
Alan Greenspan is not, we're told, happy about this 42-minute blockbuster. Watch it, and you'll understand why. This is economics and history as they are meant to be: fascinating, informative, and motivating. This movie could change America.
http://www.thedailybell.com/2326/A-Mises-Media-Classic-Money-Banking-and-the-Federal-Reserve.html
Thanks, I'll watch it once it's saved to my hard disk.
Good comment. Printed for future reference.
The metrics mentioned are completely irrelevant. P/E?!? Passe! We don't need no stinking earnings!
On a price per clicks basis, the only relevant metric in this modern, digital age, LNKD is baaagin, baybe! To Jupiter and beyond!
8 million in net revenue - YES!!!!
This is going to USD $700 w/in 6 months!!!
Cue Abby Joseph Cohen AND Jim Glassman, baby!
http://3.bp.blogspot.com/_H2DePAZe2gA/SaoG8dpVq9I/AAAAAAAAIgk/uTs7gBrjkc...
http://www.mountaindulcimer-1-3-5.com/ImForeverBlowingBubbles.jpg
http://www.living-happiness.com/wp-content/uploads/2010/07/Chasing-Bubbl...
LinkedIn Files For IPO; Revenue $161 Million For The First Nine Months Of 2010
What did PT Barnum say?
Pull my finger?
"Never give a sucker an even break!"
"There's a sucker born every minute."
Up nearly 100%. Where are those breaks to stop the massive speculation?
Do IPO margin hikes even exist? I would be curious to see what insiders are selling into this IPO and leaving the bag to the fools buying and willing to hold?
NYSE will be raising margins 5x over the next 2 weeks...
(yes yes I know there is no margin in the cash market...bear with me here)
It's only speculation if the banks are on the wrong side of it.
I add you all. For the profit.
And what does this company even do? useless...
LinkedIn is not even that good of a service. It is mediocre (imo). Nothing special about it.
Agreed 100%. Even other professionals still use Facebook to stay in touch as opposed to Linkedin. I'm connected to somewhere between 50-100 people on Linkedin but I have no clue exactly how many because I haven't checked in months. I don't know ANYBODY that checks it regularly. I wouldn't even call this a fad.
What a fucking joke. Somebody is going to get left holding the bag on this piece of shit stock...
I hope it's your son.
he actually did well in his H.S. business class for the fictional portfolio he talks about. he was only down 12.7% but he got a D+ in the class so he passed.
that being said, we are holding him back another year.
It was the lead paint in the house.
Did you often find him chewing on lead paint chips?
That poor bastard.
Do not take that reverse mortgage out on your house and go all in on a leveraged LinkedIn buy. Even if it means having his feelings hurt.
C'mon. You can't protect him forever, and when your gone, who will take care of him, feed him and change his diaper?
lol.
Maybe they can do a "stock" swap with a Chinese reverse merger...
Can't wait for the lock-up date on those IPO shares expires. This is going to be one BIG SHORT I do not want to miss.
But it is "social" on the web!! 980x P/E be dammed...!!! GET IN!!! AAARRRGHHHH>>>
I am sure this will end well. Whatever happened to IPO's being for capital investment? All this does is let the VC capital out at rich valuations, who ever buys this stock here deserves being separated from all his money.
Also, this is a great day for all the IPO flippers of the world. They are providing a great service and for sure adding "value" to this rigged, hilarious market. I am going to move to Africa.
I hear MySpace is really popular in Africa, and it's a screaming deal right now, it's going to EXPLODE, I just know it.
I've got a giant turd - it makes no money and it's got little potential - however it certainly will float.
I have been advised by Goldman that it's worth $50 Billion - so please invest at the float.
You don't want to be the only one without shit on your hands.
This is the news they need to make people forget that housing is down another .08% and the Philly Fed manufacturing went from 18.5 to 3.9.
True, but when I get a chance to buy some Facebook stock I am going to sell my metals, get a HELOC, charge up my credit cards, and find some signature loans to lock in on that winner. Facebook, now there is where productive capital should go. The Chinese ain't got nothing on our social world of egomaniacal delusion.
do you have a facebook group for that "sell all buy facebook"tm that I can join?
It's amazing to see so much money being thrown at things that are so inherently unnecessary and virtually worthless. One would think the world didn't even exist before Facebook. It's as if the mere fact so much money can be thrown at these companies justifies throwing money at them.
"One would think the world didn't even exist before Facebook"
Only for those with a fagbook perspective for the rest of us we don't give a shit about your iPhones, fagbooks, twitter, iPads, and for that matter VC#.
~O~
And just imagine if RedTube went public......at least that site is actually worth visiting.
That would make an interesting IPO.
.
Back to drunk on IPO's? Red Flag... Com'on Ben Pour it on!
Internet bubbles...
Remember Interworld's IPO? Didn't the CEO/Co-Founder (BoZo just sold a home) get "ill" and cash-out before the lock-up expired?
Ultimate support is eventually $0.0006 for LNKD too?
INTERWORLD CORP (ITWR:OTC US) LAST $0.0006 USD CHANGE TODAY 0.00 0.00% VOLUME 0.0By Jim Cramer 02/29/00 - 09:42 AM EST
Editor's Note: James J. Cramer is the keynote speaker at the 6th Annual Internet and Electronic Commerce Conference and Exposition, held today at the Jacob Javits Center in New York City. We're running the full text of that speech here.
You want winners? You want me to put my Cramer Berkowitz hedge fund hat on and just discuss what my fund is buying today to try to make money tomorrow and the next day and the next? You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now.
OK. Here goes. Write them down -- no handouts here!: 724 Solutions (SVNX), Ariba(ARBA_), Digital Island (ISLD), Exodus (EXDS), InfoSpace.com (INSP_), Inktomi (INKT), Mercury Interactive (MERQ), Sonera (SNRA), VeriSign (VRSN_) and Veritas Software(VRTS_).
We are buying some of every one of these this morning as I give this speech. We buy them every day, particularly if they are down, which, no surprise given what they do, is very rare. And we will keep doing so until this period is over -- and it is very far from ending. Heck, people are just learning these stories on Wall Street, and the more they come to learn, the more they love and own! Most of these companies don't even have earnings per share, so we won't have to be constrained by that methodology for quarters to come.
In hind sight, Cramer's last sentence is sad, funny, and oh so prophetic:
9/29/2000
Synchronized Sinking: Once Again, All 'Net Sectors Fall ________________________________________________For the third consecutive week, all 13 Internet sectors tumble as earnings fears grip investors.
______________________________________________________
TOP 10 LOSERS 7-Day % Loss Category
INTW InterWorld -62.50% E-Commerce Enablers
PCLN priceline.com -54.10% E-tailers
EPRS Eprise -44.70% Performance Software
SQSW Sequoia Software -42.60% Performance Software
LUMT Luminant Worldwide -42.40% Consultants/Designers
ARTD Artistdirect -42.00% Content/Communities
AWEB Autoweb.com -39.70% E-Commerce Enablers
IPIX Internet Pictures -34.90% Performance Software
IVIL iVillage -34.70% Content/Communities
BWAY Breakaway Sol. -34.50% Internet Services
http://www.internetnews.com/bus-news/article.php/473151/Synchronized-Sinking-Once-Again-All-Net-Sectors-Fall.htm
Although, should have BTFD in PCLN.
I can't find the link now, but I do believe the total losses one would have incurred buying and holding Cramer's recommendations at that time, over a one year period, would have been 94%.
Of course, many of the companies he recommended went lights out over a longer horizon, so it would have been even worse, as hard as that is to believe.
The man is clearly a genius - nobody can be that wrong by sheer chance alone.
I can't find the link now, but I do believe the total losses one would have incurred buying and holding Cramer's recommendations at that time, over a one year period, would have been 94%.
Of course, many of the companies he recommended went lights out over a longer horizon, so it would have been even worse, as hard as that is to believe.
p.s. and OT, but Goldman just went from conviction (convicted?) high to sell (and sell in a big way, calling for "storm clouds of oversupply of CPUs") on Intel, and in a big way, in a matter of a mere 2 weeks. See how transparent the game is once people actually observe basic, plain facts?
Some people have been shorting PCLN for almost 2 years now and are not the happiest ones... :-)
Woohoo! So when do we get on the short bus?
Now. This is like the Blackstone IPO.
what happened to circuit breakers?
they broke.
Linkedwhat?
Who knows when I will be able to buy some puts?
Ahhh Another Nice Short In The Making!
stocks with 4 digit PE ratios will be the "must have" stocks of 2012. No doubt Robo is chasing this pig with a massive hard on (a la DSK) so he can tell all the boys at the club that he owns this junker.
What club...you mean Robo got a month pass gift card at the YMCA?
NAMBLA
As a company it is a joke! The valuation is a joke! But the stock could...I say could trade higher..why...controlled IPO limited flow, to strong hands.. Bullshit....rig...be careful
not a internet bubble...its the social internet bubble...
Those are the best kinds of bubbles. Ones with a narrow focus and based on a fad. All revenue is from selling real estate to advertisers.
The next new fad wipes them out.
Remember myspace? It wasn't that long ago. It's a social network too, now dead.
The social internet. What an oxy fucking moron that is. Generation Y and whatever fledging fuckwads are coming through now are pricks. If youre in your teens or 20s and you aint a prick , you must be home schooled. (granted i was a prick then and by and large still am but thats not the point)
So time to buy some puts on this hollow and substanceless crock of crap.
"In the age of lies, even the clumsiest frankness is preferable to the best-orchestrated ruse." - Albert Camus
Yep.
John Hathaway is probably going to have nightmares from now on about watching LNKD go parabolic while his PM stocks get crushed 40% repeatedly every spring, and seem to be permanent underperformers.
Oh, the horror!!
That said, I'm expecting a vicious short-covering rally in the XAU any day now.
Whatever, troll.
aaahahahahaha
loading up my puts
I have a couple of parked domains. Should I go public? Sure could use a few $billion or so.
Web 2.5, here we go!
Yeah, give me some of that Linkin stuff and a dozen iPads to go please. I can still pay with FRNs, right?
How high would PE need to be in order to reach the moon?
I'm sure they'll raise the margin requirements to curb this excessive speculation.......
No?
(sarcasm)
linkedin is bullshit plain and simple. It's a poachers dream.
Throw out all your sources for work to complete strangers.
Great idea if you want to loose work. A great site
for snakes.
Is there any indirect way to short this before the lock ends? Can't wait to buy some puts on this. Just to see what happens.
how do i get me some put options???
this is what the new ecomomy is all about...day trading...quick money...China is laughing....and gold is down....
Peanuts!
Popcorn!
Cotton Candy!
What are those Bozos®(Clowngress) doing in the center ring? :>D
news fm Rooters: "LNKD halted by NYSE, due to 80% run in matter of seconds. All trade will be cancelled and reversed"...kidding, kidding, buy some more.>
http://www.entendance.com/forums/viewtopic.php?f=16&t=171&st=0&sk=t&sd=a...
+1 good article from marketwatch
what a joke, who's buying this fata morgana at over 1000 x PE ???
HFT already throwing it back and forth in a zero sum loop, I suppose...
LNKD up 88%. RoboTraiter is a gawd dammed genius. I'm buying everything he recommends from now on. I'm gonna be one of the Morbidly Rich. Woohoo!! (although too bad I missed this rocketship)
Good play long or short for a few days, maybe some actual humans on the other side of the trade?
Decades ago, many feared that "big brother" would have all our personal data on a computer. The irony now is that the sheeple willing give much of their data to the likes of Facebook, LinkedIn, etc. and provide daily GPS data via cell phones.
Once its written, its there forever. You can bet a significant and grwoing part of energy consumption is due to data storage farms.
There's a sucker born every minute.
90% of them are thinking about buying this IPO.
You do know options dont trade on a issues IPO day, right? Im sure you are just being sarcastic and not plain ol ignorant, right?
+1
:)
Me? I know there are no options available for this stock, yet. The jest was the "human" quip as opposed to HFT 'puters.
the twits better face book their profits before they are linked out
$45 or whatever was the insider lock up price offered to buyers of big blocks by the brokerage firm (or firms, I haven't followed this POS) that were hired as underwriters to handle taking this IPO to market - aka the subscription.
IOW, anyone not a preferred client of the brokerage firms able to offer the true IPO price to clients, and who is buying in at market open, got in closer to the $90, or whatever.
Now, those people are (and I'm almost certain of this) going to get annihilated if they hold this POS, and even the true IPO insiders, getting in at the $45 level may be damaged, as they have to wait out the lock up period before selling.
Ass pounding games invented by the shysters of Wall Street are all fun and games until people lose significant sums on POS hot stocks.
This thing is a giant pig of an ugly, disease infested stock, and I am continually amazed by the capacity for human stupidity, especially when in the form of herd behavior.
Reminds me of how dolphins (the mammalian kind) swim in a circle, releasing bubbles to form a virtual net around a group of sardines...it's snack-time!
Remember www.quepasa.com, they IPO'd early 2000 without a running website on which their business concept was built on!
Indeed some investors asked Que Pasa?
Happy days are here again! Yahooooo!!! (No pun intended...)
CNBC is desperately trying to make the Linkedin IPO a suckers' proxy for the overall market. The second-by-second stock price is prominently displayed where individual stock information has NEVER been shown (the upper ticker). Ugh...desperate desperation.
IPOs such as this seem to be a huge Ponzi scheme. The initial investors will make out very, very well but the last guy holding the shares (mainly the public) will get stuck with nothing when the true value of the company is discovered over time. You can see the same pattern being set up with Facebook as well. Seems to me like this is part of the playbook for VCs.
The equity markets have been range bound for a while now, despite some volatile months here and there, for about a year.
In past break downs of equity markets, tech or hot IPO stocks fade quickly and usually mark the top before the fall, with increasing buy backs of large blocks of company stock and dividend raising (coupled with high levels of insider selling), which is a perfect and parallel pattern to what we are observing now - it may or may not be this POS (I think it will be, but we shall see), but we are in that historically solid and repeating pattern here.
The one exception I will note is that multinationals have driven earnings higher on the strategy of cutting costs to the bone (a smart strategy in these times of low capacity utilization, ability to offshore/outsource and issue/refinance debt at record low yields, and hedge currencies), but that these same multinationals that thrived off this strategy will be severely and adversely impacted when markets (especially credit markets) revert to historically normal patterns.
It just hit 122. Unbelievable. Turd without earnings, where nobody hangs out unless desperately searching for a new job. Not a buy even at 12.2 or 1.22.
I have wondered about linkedin for some time. I guess I am/was a member, but it appears to be a perpetual advertising spot ala facebook. I get messages about people going on vacation or that they are now connected to someone outside of the 6º that I don't tread. I have to agree with T, this is likely to end badly.
What a move! It went from $90 to $122 in about 15 minutes. (then pulled back to $101)
To mark the occassion I closed my account.
To mark the occassion I closed my account.
It actually makes sense when you figure the business model is to help people find jobs.
Dolt's! When adjusting for inflation those P/E ratios are actually quite reasonable.
/sarcasm