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http://www.bbc.co.uk/news/business-13451057

So LinkedIn was priced at $45 per share valuing the company at $4.25B. With earnings of $15.4M last year I make that a PE ratio of 276.

At one point in trading it's share price reached $93 which by my calcultion is a PE of 570.

Have I missed something? Is it 01 April or have I just been transported back to 1999?

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Twitter, Facebook etc, all absurd valuations recently touted.

Keep a few quid in some internet stocks, you'll never know your luck.

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It sounds crazy, but internet is still in. I see it, people with 1000+ Facebook friends, Lady Gaga has 36million Facebook friend ads.

BLNX, ASC all have took off like rockets.

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http://www.bbc.co.uk/news/business-13451057

So LinkedIn was priced at $45 per share valuing the company at $4.25B. With earnings of $15.4M last year I make that a PE ratio of 276.

At one point in trading it's share price reached $93 which by my calcultion is a PE of 570.

Have I missed something? Is it 01 April or have I just been transported back to 1999?

It does feel that way doesn't it? I think that everyone is afraid of missing the next Google.

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It's all the QE money desperately looking for yield (you know that money that was supposed to help kick-start the economy).

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Twitter, Facebook etc, all absurd valuations recently touted.

Keep a few quid in some internet stocks, you'll never know your luck.

Hi Money Spinner

I'm inclined to think it will all go bang once the next fad after social media takes off. If only I knew what that was going to be...

Let's say a sensible fair value PE is 16. I'm happy with this as detailed in my blog here http://retirementinvestingtoday.blogspot.com/2011/05/s-500-cyclically-adjusted-pe-s-pe10-or.html

To move from 570 to 16 they have to increase revenues by 35.6x meaning revenues need to go from $15.4M to $548.2M. Facebook has revenues of what - $2B or so. So that would mean to even have a chance of being valued fairly they need to get revenues to 1/4 of that of Facebook. Assuming they can generate the same revenue per "member", are 25% of Facebook users "professionals" and thus wish to use a site like LinkedIn. I haven't checked but gut feel says that market is not there.

The only thing I can think of is if it becomes the worlds biggest job board. Maybe...

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PE means nothing in an internet stock. Eyeball and mouseclicks is more applicable.

I felt Asos (ASC) was too much at £7. Now its £23.

I "felt" the same with Rightmove (RMV) at £8, today it is £10.

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I'm inclined to think it will all go bang once the next fad after social media takes off.

It definitely will, but only after the investment banks have off-loaded the shares to our pension funds at a large profit.

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PE means nothing in an internet stock. Eyeball and mouseclicks is more applicable.

I felt Asos (ASC) was too much at £7. Now its £23.

I "felt" the same with Rightmove (RMV) at £8, today it is £10.

IMO Asos is going to go nowhere but down.

From what I can see their business model was to take clothes from High Street retailers and sell them online. The High Street retailers were asleep at the wheel while this happened and so they made a killing. I think over the next few years those High Street retailers will take online more seriously and damage Asos. It's already happening. Just look at what skillsets are being chased in the job ads.

Asos seem to understand and are trying to move into their own brands. The only problem is why buy Asos when you can have Primark...

edit: spelling

Edited by wish I could afford one

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Well yes there is if they can flip it for more in 6 months time.

Nope.

The distinction between yield and capital appreciation without one is what defines a bubble.

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Nope.

The distinction between yield and capital appreciation without one is what defines a bubble.

Whatever, the banksters only care about the profits, if it's generated by yield or capital appreciation or extorsion doesn't really matter.

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CML £2 and

GNG also worth a look at 40p.

All market caps under £30m

Come back to this thread in 1 year to see if we have missed out on the next tech boom.

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PE means nothing in an internet stock. Eyeball and mouseclicks is more applicable.

Sarcasm, surely?

Or are you still waiting for Pets.com to come good?

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PE means nothing in an internet stock. Eyeball and mouseclicks is more applicable.

I felt Asos (ASC) was too much at £7. Now its £23.

I "felt" the same with Rightmove (RMV) at £8, today it is £10.

So Pump and Dump on internet sites has had its day then? I think not.

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http://www.bbc.co.uk/news/business-13451057

So LinkedIn was priced at $45 per share valuing the company at $4.25B. With earnings of $15.4M last year I make that a PE ratio of 276.

At one point in trading it's share price reached $93 which by my calcultion is a PE of 570.

Have I missed something? Is it 01 April or have I just been transported back to 1999?

Yes we clearly have, this is madness. Markets are apparently very stupid and have very short memories. After the last few years though, this news should surprise no one.

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Sarcasm, surely?

Or are you still waiting for Pets.com to come good?

These things go in cycles, perhaps this is a new cycle where PE doesn't matter (during the up phase). It sure is risky, but people ignore it as long as their stocks go up. Most people don't even know what PE was the last time around, and probably won't this time.

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Whatever, the banksters only care about the profits, if it's generated by yield or capital appreciation or extorsion doesn't really matter.

In your obsession with blaming everything on the banksters*, you are forgetting that there are other players in the stock markets who are bidding LNKD up - and their motivation is the same: greed.

I bet plenty of retail "investors" are filling their boots with this cr@p. As usual, only a handful will get any return at all.

*who I agree are scum

EDIT: ticker

Edited by Greener Pastures

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Yes we clearly have, this is madness. Markets are apparently very stupid and have very short memories. After the last few years though, this news should surprise no one.

Agreed. But a PE of 570! Can anybody remember the PE's of some of the dotcom darlings?

I guess in the extreme some of them were infinite as they never made a profit but what about some of today's profitable survivors.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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