LinkedIn IPO: Three Weeks Later

Three weeks ago I wrote my predictions on how I thought LinkedIn’s IPO would pan out. I will admit, while the prediction itself was not exactly a bold prediction, we can see the stock starting to perform as expected.

While I say it is performing as expected, I will say that it is higher than I expected. I personally did not expect the stock to peak at around $120 per share. I also certainly did not expect the stock to be at $72 per share at this point.

Let’s look at the stock price trend:

Why the stock is sliding down should not come as a surprise.

  • EPS: 0.07
  • P/E Ratio: 1,074.78

I couldn’t even have imagined it possible. A whopping 1,000+ price to earnings ratio? Investors must be crazy…

There is a lot of talk about shorting LNKD, but there has to be more people willing to go long on the stock, and I’m not sure there will be very many.

At least we can learn from this. Groupon is next – can we expect the same kind of results?

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