LinkedIn shares drop 40%, erasing $10B of company's value

Post by ryanSrich » Sat, Feb 06, 2016, 7:17 AM UTC

kuschku wrote: post #315

pyrrhotech wrote: post #312

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…

It’s probably even a too optimistic forecast. The readjustment of the market to reality is going to be a big issue, especially when one looks at just how many companies are operating at huge losses. Most people already know that it can’t continue like this. The good thing is, real estate values will decrease like the pay, so people can rent at cheaper rates in the bay areas. The bad thing is, those who have bought a…

Post by PakG1 » Sat, Feb 06, 2016, 7:17 AM UTC

CamperBob2 wrote: post #380

pyrrhotech wrote: post #312

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'm expecting a 30-40% decline in S&P 500, 30% decline in bay area real estate values, 30% of bay area "well-funded" startups going bust, and 25% reduction in market rate pay for software engineers over the next 2 years And by expecting, you mean investing accordingly? Hopefully that will turn out to be a gloomy forecast, but it's best to prepare for the worst. Actually, it's not. Being right at the wrong time is arg…

Post by stephengillie » Sat, Feb 06, 2016, 7:27 AM UTC

gohrt wrote: post #137

vlunkr wrote: post #115

Earlier quoted context omitted.

To me it looks like a wasteland of recruiters. I used to think it was neat when some recruiter would contact me about a job, but now I realize they are just spamming everyone with (your framework here) listed in their skills. The over-saturation of recruiters, connections with everyone you even slightly know, and people endorsing you for skills they don't know you have has made it all meaningless.

If you were an outsider in need of a job, you'd appreciate the recruiter spam.

Post by codesushi42 » Sat, Feb 06, 2016, 7:46 AM UTC

LoSboccacc wrote: post #536

codesushi42 wrote: post #534

Earlier quoted context omitted.

> The number of people employed might. It will. > Engineer salaries are not going to drop a whole lot. Basic economics say that will follow. None of these events are isolated. They're interconnected and cascade. Everyone will be affected, even those who are flipping burgers in the Bay Area.

> Everyone will be affected, even those who are flipping burgers in the Bay Area. hey sure there is a bubble there, but last time I checked BA wasn't caput mundi yet. Plenty non inflated startups do exist, even if not specifically there. Where the whole economy is sustained by VC money, well, there's gonna hit the hardest. But doesn't seem that the whole IT world is following that model.

Post by justinzollars » Sat, Feb 06, 2016, 7:57 AM UTC

pjdemers wrote: post #464

sinzone wrote: post #439

Earlier quoted context omitted.

> 30% decline in bay area real estate values. that won't happen. During the 2008 big burst everywhere in USA was felling apart but in SF real-estate was just down 5%-10%. SF can't expand easily since it's water 3/4 all around. Demand still high and supply very low. That won't change dramatically, with or without a collapse in the public market.

During the 2001-2002 bust, bay area rents fell 50% in marginal neighborhoods. In desirable neighborhoods, rents fell maybe 10%. Prices to buy came down, but not nearly as much. In marginal areas 20%, in desirable neighborhoods, maybe 1%. Small houses and fixer-uppers in the 10/10/10 school districts (ie, Palo Alto) kept going up. One reason is that construction prices fell 30%, so there was allot of tears downs and r…