LinkedIn Corp. (NYSE:LNKD)

CAPS Rating: 2 out of 5


Player Avatar ServusDei7 (99.58) Submitted: 5/19/2011 9:42:49 AM : Underperform Start Price: $84.37 LNKD Score: -122.00

Outrageously overpriced dog at P/E over 2000. (Market value $4.3B divided by 2010 earnings of $1.85M.) This company lost money in 2009, 2008, 2006, and 2005, and just barely manged to break even in 2007, so average P/E is even higher. The tech bubble in 1999 had a P/E of "only" 100. Over the long term this stock has to drop by at least 99%.

Report this Post 6 Replies
Member Avatar sjaycox (< 20) Submitted: 5/19/2011 10:56:21 AM
Recs: 0

At $84.37 with normalized earnings of $0.0386 in FY10, the P/E is 2,186. That's insane - at a 100 P/E this is a $4 company. Given its lack of earnings performance and a questionable long-term business model, not sure I would buy even at a 10 P/E. Wish I could buy some puts right about now.

Member Avatar bluedome (86.81) Submitted: 5/19/2011 11:57:39 AM
Recs: 2

Too bad there are no shares available to short. I bet goldman sachs is shorting all they can get.

Member Avatar Lennyg02 (< 20) Submitted: 5/19/2011 3:12:34 PM
Recs: 0

Yeah, I'm sure those in power are going to make a fortune from doing what we can't do.

Member Avatar jasonb75 (57.80) Submitted: 5/19/2011 9:02:08 PM
Recs: 2

If I was Facebook, I'd be going public next week

Member Avatar loyalcapitalist (< 20) Submitted: 1/2/2012 6:46:05 PM
Recs: 0

Remember guys if you cant short it, buy puts!

Member Avatar medtechvet (< 20) Submitted: 4/7/2013 2:42:00 PM
Recs: 0

I have had a recent experience with LinkedIn that caused me to delete my records from their system. I raised the issue of LI sending invitations to connect, supposedly from me, without my knowledge, and to people I have never heard of, on March 23rd on the LinkedIn "contact us" site. Since then there have probably been at least 100 messages from persons on the LI discussion forum with the same issue.

There has been no response from the Company, and I could not get to a human being on their main or customer service phone lines - they offer only internet access, with very poor response. I have previously led two NASDAQ companies, and it is deplorable not to be able to reach a public company by phone in an expeditious fashion.

I believe that If a viable competitor becomes available, LI is very vulnerable with this type of behavior. It may also raise some fairly serious privacy issues, in my opinion.


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