As professionals, many of you, if not all, have more likely heard or even used LinkedIn, the social media website for professional people. I often got invitation from someone I know to register in LinkedIn. It functions very much like the Face Book, but the focus is for networking among professionals. It is said it has started to earn some money now. Today, it is a big day for LinkedIn, its IPO - the first day of trading. Its initial price was set at $45 but immediately it jumped to $80 or so at the opening and it further rocked up as high as $112 today. At this price, its PE ratio is 1200 times earnings. Do you know what it means? The current S&P PE ratio is about 17 times earnings, which is already expensive. Metaphorically speaking, based on the current earnings of LinkedIn, your investment money will get fully returned in 1200 years if you can hold it that long. Is it crazy? It is to me! This is almost like an Internet bubble again!!
I'm seriously considering to short LinkedIn!!!
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