351–360 of 663 posts
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Umm, did you read the earnings report? They are hardly losing money.
That depends on your definition of "losing". Ignoring stock based compensation (almost 20% of revenue if properly accounted for using GAAP) helps to get the "adjusted" net income into positive territory. http://www.nytimes.com/2015/06/21/business/high-tech-fantasy...
A lot of people hating on LNKD here, but this isn't really company-specific. This is a macro shift. LNKD being down by 40% by only guiding down 8% below estimates is a big warning of how the market is about to treat all bloated growth stocks. In 2013, if they reported the same results, the stock would have been flat or slightly down. It's a major shift in investor sentiment. Bubble bursts always start in the public m…
I am getting giddy at the opportunity to making dumb stupid money again. It will be like 2008 with 30% returns per month. Oh how I miss those days!
A lot of people hating on LNKD here, but this isn't really company-specific. This is a macro shift. LNKD being down by 40% by only guiding down 8% below estimates is a big warning of how the market is about to treat all bloated growth stocks. In 2013, if they reported the same results, the stock would have been flat or slightly down. It's a major shift in investor sentiment. Bubble bursts always start in the public m…
The problem is shrinking global liquidity. Losses in the Chinese financial system and in the global energy sector are forcing governments, central banks and sovereign wealth funds to sell assets around the world. These are some of the biggest asset managers in the world.
It is unclear to me how this will end. When the mortgage market melted down and destroyed the balance sheets of banks, the Federal Reserve liquified their illiquid assets using QE. For better or worse, QE restarted the jammed shut credit engine.
At the moment, outside of wholly energy dependent countries (Middle East, Latin America, Nigeria, etc.), there does not appear to me a 2008-like financial system shutdown.
Coming back to tech. IMHO, big tech companies with inflated multiples (as benchmarked against the FCF generating engines at GOOG and AAPL) now have a target on their backs. Unicorns that aren't cashflow positive are going to learn how to negotiate down rounds. Real estate values are sticky and will hold up longer than people think. Engineer salaries are not going to drop a whole lot. The number of people employed might.
Every time I see something like this, I have to wonder - Did anybody actually _lose_ anything? It's not like LinkedIn is more or less intrinsically valuable than it was yesterday. The only thing that's happened is that their baseball cards dropped in resale value. Anybody who thinks a non-dividend non-voting stock is anything other than a baseball card is kidding themselves.
Employees whose compensation included stock units (if that's a thing at LinkedIn and I assume it is given the industry) certainly lost something. If Google's stuck took a hit like that I'd be out a significant part of my compensation.
When LI's stock price dropped, it's not like somebody showed up and plundered the shareholders' bank accounts. It's never safe to treat stocks like money.
A lot of people hating on LNKD here, but this isn't really company-specific. This is a macro shift. LNKD being down by 40% by only guiding down 8% below estimates is a big warning of how the market is about to treat all bloated growth stocks. In 2013, if they reported the same results, the stock would have been flat or slightly down. It's a major shift in investor sentiment. Bubble bursts always start in the public m…
Salaries tend to be sticky. A more likely outcome is the bottom ~25% of engineers being laid off or moved to contract status.
Also, anecdotally, in 2008 some of those fired were expensive new hires. "The bottom 25%" might be defined as those fired but otherwise I don't think there is a definition of "bottom" those who get fired all fit. Say, if a project or a department is terminated, often everyone is let go, instead of trying to keep "the best" and replacing "worse" people elsewhere with them, etc.
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I am getting giddy at the opportunity to making dumb stupid money again. It will be like 2008 with 30% returns per month. Oh how I miss those days!
I'm curious, what do you mean?
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Except the last time the markets dropped, real estate prices went up. If there is a problem, the Fed will drop interest rates, maybe even go negative, and that will cause bond rates and conceivably mortgage rates to drop as well. The Fed wants inflation, and most importantly home price inflation. They will do whatever it takes to stop deflation, they've already said this. Bernanke said he would drop bags of money out…
That works until it doesn't, see Japan.
Please stop trying to remotely argue in favour of the ludicrous rent prices. The point isn't that some combos can work out, the point is that people shouldn't have to buckle down and "combo up" to afford a fucking apartment.
Your misplaced moral outrage is clouding your reading comprehension.
All those celebrating this event - don't. If you think these guys were using shady and scummy tactics before to spam you and steal your contacts, what do you think they are going to do when their share price sinks? Suddenly reform and stop the borderline-illegal stuff? LinkedIn will get even more aggressive at monetization. So expect even more of: 1) Random clicks that let you "invite" everyone in your address book 2…
So, either way they keep acting shittily, at least this way other companies might learn a lesson not to.
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Tech employees making $200k+ are the only ones who can afford a $4k per month apartment in SF. If salaries drop then rent drops. I don't see this being a bad thing.
> If salaries drop then rent drops. I don't see this being a bad thing. Maybe I'm being irrational, but I suspect that the drops won't be proportional and the housing isse in SF will just get worse.
So yeah ask. And be prepared to move. If you aren't prepared to move, you're not ready to save.