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Showing results for tags 'Irrational exuberance'.
Microsoft has just announced it is paying 26 Billion USD in cash for professional social network LinkedIn. In 2015 LinkedIn generated 2.99 billion U.S. dollars in revenue with a user base of 440 million users. Shares jumped $60 on the news. In 2015 Net Income was 166 million USD giving a PE of 157 although I understand that if you are not making a stonking loss in the dot.com world you are doing something wrong. http://www.marketwatch.com/investing/stock/lnkd/financials I'm calling top on this asset bubble although over at The Fool they claim it is more profitable than Facebook. http://www.fool.com/investing/general/2015/03/11/how-linkedin-earns-a-higher-gross-profit-margin-th.aspx If Microsoft really do pay "cash" the largest bill in circulation in the US is the 100 dollar. That would be the equivalent of 250 tonnes of money needing 160 SWB Transit vans to deliver it to LinkedIn's headquarters.