Friday, 20 May 2011

Linked in Loony tunes

What a debut for Linked in up nearly 100% at one point on its NY debut. Eat that Glencore.

So at least we now know who the new stock market darlings are to replace Mining and Resoucres; its Social Media.

On this performance, Facebook is going to hit those extreme valuations that I laughed so hard at. Linked in isnow rated at 25x earnings compared to Google's 6x.

Yikes, a nice bubble pumper up by the algorytms, funny money and poor retail investors piling in becuase there is no interest in the bank.

This ends badly of course, as LinkedIn has no real way to earn money, I use it myself but would never pay for its services, its handy but inessential. Twitter et al have all had this revenue problem for a long time and not resolved it.

Still, anyone know any UK companies listed or going to list tht can tap this crazy mania!?

7 comments:

Bill Quango MP said...

Now just a lastminute.com.Haven't we been here before?

Timbo614 said...

We've been here before that's certain.

I think I'll create one(just a small one)...

The neatest Idea I have seen recently is ClickoChet (http://www.clickochet.com/) an advert trading site :)

US centric at the moment but looks workable.

Blue Eyes said...

People have been talking about this bubble for a while now. My guess is that Facebook will time this to perfection and that a lot of foolish private small investors will get burned. I assume Facebook will encourage its users to buy small chunks of it. There are enough idiots who will buy into it because they virtually live their lives on the site!

Budgie said...

BE - my children ONLY communicate on Facebook. They are permenantly glued to their laptops.

andrew said...

I think facebook is irrationally popular at the moment just like hula-hoops, deely boppers and the rubiks cube.

Whether it can cross over a generational gap or not and become the equivalent of the postcard is a good question.

In the late 90s ICQ was a big thing that no-one talks about anymore.

In an interview, Zuckerberg said that they were not the first, or the cleverest, but they did do a number of small things that made the user's experience that little bit better.

It does not take much to lose that edge.

Now, I must go an pimp up my linked in profile.

Anonymous said...

Netflix

james moylan said...

I have a web site where I give advise on penny stocks and stocks under five dollars. I have many years of experience with these type of stocks. If their is anyone that is interested in these type of stocks you can check out my web site by just clicking my name. I would like to comment about the linkedin public offering. New issues are almost always bad investments the vast majority of these stocks are way over priced on purpose. I always recommend that investors stay away from these stocks.