LinkedIn IPO Opens For Trading At $83, 980x Annualized P/E

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Thu, 05/19/2011 - 10:09 | 1291186 FreeNewEnergy
FreeNewEnergy's picture

It's bidniss, bitchez!

Thu, 05/19/2011 - 10:22 | 1291252 Dr. Richard Head
Dr. Richard Head's picture

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.

 

Thu, 05/19/2011 - 10:26 | 1291271 Fish Gone Bad
Fish Gone Bad's picture

Yahoo! was brought public by Goldman.  What a pile of worthless crap that still is.  Linkedin is another fleecing on the way.

Thu, 05/19/2011 - 10:28 | 1291291 Dr. Richard Head
Dr. Richard Head's picture

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.

Thu, 05/19/2011 - 11:13 | 1291523 Vendetta
Vendetta's picture

productive capital investment does not make markets 'efficient', only scams and massive malinvestment.  Didn't you get the memo?

Thu, 05/19/2011 - 10:45 | 1291393 dwdollar
dwdollar's picture

I think you underestimate how many unemployed/underemployed college educated wannabe yuppies there are.

Thu, 05/19/2011 - 10:56 | 1291436 Dr. Richard Head
Dr. Richard Head's picture

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.

Thu, 05/19/2011 - 11:23 | 1291563 Manthong
Manthong's picture

Don't forget the extra ration of lube.

Thu, 05/19/2011 - 11:05 | 1291478 YHC-FTSE
YHC-FTSE's picture

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.

Thu, 05/19/2011 - 11:29 | 1291593 TruthInSunshine
TruthInSunshine's picture

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.'

Thu, 05/19/2011 - 11:36 | 1291635 YHC-FTSE
YHC-FTSE's picture

+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.

Thu, 05/19/2011 - 14:26 | 1292585 equity_momo
equity_momo's picture

it will all find its way into the "right" peoples pockets.     this stock isnt worth   8 bucks let alone 80.

Thu, 05/19/2011 - 11:48 | 1291699 Dr. Richard Head
Dr. Richard Head's picture

So what does it mean if I posted this particular thread from ZH on LinkedIn?  A pissed off yuppy I believe.

Thu, 05/19/2011 - 10:29 | 1291293 MisterAmbassador
MisterAmbassador's picture

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.

 

Thu, 05/19/2011 - 11:06 | 1291479 tmosley
tmosley's picture

This is an excellent post.

Thu, 05/19/2011 - 11:27 | 1291580 VisualCSharp
VisualCSharp's picture

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. :)

Thu, 05/19/2011 - 11:37 | 1291625 tmosley
tmosley's picture

It doesn't. The average worker has lost half his purchasing power in terms of housing and gasoline. This is not confidence inspiring.

Thu, 05/19/2011 - 11:45 | 1291695 Calculated_Risk
Calculated_Risk's picture

And much more in taxes.. cause the more you "make", the more they can take!

Thu, 05/19/2011 - 13:18 | 1292261 malek
malek's picture

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.

Thu, 05/19/2011 - 12:09 | 1291821 Philippe
Philippe's picture

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. 

Thu, 05/19/2011 - 12:15 | 1291870 TruthInSunshine
TruthInSunshine's picture

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!

Thu, 05/19/2011 - 14:30 | 1292606 equity_momo
equity_momo's picture

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.

Thu, 05/19/2011 - 13:13 | 1292210 Pegasus Muse
Pegasus Muse's picture

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

 

Thu, 05/19/2011 - 18:27 | 1293662 StychoKiller
StychoKiller's picture

Thanks, I'll watch it once it's saved to my hard disk.

Thu, 05/19/2011 - 18:57 | 1293757 fabian
fabian's picture

Good comment. Printed for future reference.

Thu, 05/19/2011 - 10:30 | 1291304 bobby02
bobby02's picture

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!

Thu, 05/19/2011 - 10:21 | 1291187 TruthInSunshine
Thu, 05/19/2011 - 10:43 | 1291390 Hansel
Hansel's picture

LinkedIn Files For IPO; Revenue $161 Million For The First Nine Months Of 2010

“We expect our revenue growth rate to decline, and as we continue to invest for future growth, we do not expect to be profitable on a GAAP basis in 2011.”

Thu, 05/19/2011 - 10:07 | 1291190 tpberg7
tpberg7's picture

What did PT Barnum say?

Thu, 05/19/2011 - 10:11 | 1291197 Temporalist
Temporalist's picture

Pull my finger?

Thu, 05/19/2011 - 18:31 | 1293667 StychoKiller
StychoKiller's picture

"Never give a sucker an even break!"

"There's a sucker born every minute."

Thu, 05/19/2011 - 10:10 | 1291193 Temporalist
Temporalist's picture

Up nearly 100%.  Where are those breaks to stop the massive speculation?

Thu, 05/19/2011 - 10:24 | 1291267 Dr. Richard Head
Dr. Richard Head's picture

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?

Thu, 05/19/2011 - 10:39 | 1291359 Libertarian777
Libertarian777's picture

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)

Thu, 05/19/2011 - 12:51 | 1292044 MarketMakersMark
MarketMakersMark's picture

It's only speculation if the banks are on the wrong side of it.

Thu, 05/19/2011 - 10:11 | 1291195 Americant Expat
Americant Expat's picture

I add you all. For the profit.

Thu, 05/19/2011 - 10:08 | 1291196 Eireann go Brach
Eireann go Brach's picture

And what does this company even do? useless...

Thu, 05/19/2011 - 10:09 | 1291201 John Law Lives
John Law Lives's picture

LinkedIn is not even that good of a service.  It is mediocre (imo).  Nothing special about it.                  

Thu, 05/19/2011 - 10:12 | 1291221 Robot Traders Mom
Robot Traders Mom's picture

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...

Thu, 05/19/2011 - 10:15 | 1291233 Temporalist
Temporalist's picture

I hope it's your son.

Thu, 05/19/2011 - 10:25 | 1291289 Robot Traders Mom
Robot Traders Mom's picture

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.

Thu, 05/19/2011 - 10:42 | 1291374 TruthInSunshine
TruthInSunshine's picture

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?

Thu, 05/19/2011 - 14:35 | 1292618 equity_momo
equity_momo's picture

lol.

Thu, 05/19/2011 - 18:30 | 1293677 StychoKiller
StychoKiller's picture

Maybe they can do a "stock" swap with a Chinese reverse merger...

Thu, 05/19/2011 - 10:09 | 1291203 slaughterer
slaughterer's picture

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.

Thu, 05/19/2011 - 10:09 | 1291205 Oniram
Oniram's picture

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.

Thu, 05/19/2011 - 10:37 | 1291345 ebworthen
ebworthen's picture

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.

Thu, 05/19/2011 - 11:05 | 1291474 writingsonthewall
writingsonthewall's picture

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.

Thu, 05/19/2011 - 10:13 | 1291206 Temporalist
Temporalist's picture

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.

Thu, 05/19/2011 - 10:30 | 1291325 Dr. Richard Head
Dr. Richard Head's picture

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. 

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