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

businessinsider.com

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

#591

Post by dev360 »

codesushi42 wrote: post #537
LoSboccacc wrote: post #536

Earlier quoted context omitted.

> 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.

That doesn't matter in the short term. Once the inflated startups tank, everything will take a dive. Remember 2000? Maybe not. Seems like many here are too young. I'm only in my early 30s and am already feeling deja vu. Life is strange.

I recall sending my resume to over 50-60 companies for junior web dev work @ $15/hr after college and only getting two answers back. It was pretty brutal.

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

#592

Post by majani »

codesushi42 wrote: post #551
toomuchtodo wrote: post #548

Earlier quoted context omitted.

Because most people here weren't around for 1999-2001.

Agreed. But I'm still a little surprised by this. I would expect anyone at least 30 yro to have /some/ recollection of what happened, if not a good understanding. Or to have the curiosity to find out what did. I'm 31 myself, but knew what was happening with the bubble during highschool (thanks pud and F'd company). Maybe the typical age on HN is 21? :)

Yup. Most guys here are in their 20s: https://news.ycombinator.com/item?id=5536734

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

#593

Post by blahblah3 »

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…

The markets have been pricing in a higher risk of recession in the past few months. Financials have been hit very hard which is one signal of this

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

#594

Post by astazangasta »

roymurdock wrote: post #590
redthrowaway wrote: post #529

Earlier quoted context omitted.

Could you explain how you see QE leading to deflation, when it's an explicitly inflationary policy?

Sure. QE pushes money into the supply side (banks) which goes primarily into rent seeking activities such as equity markets and real estate due to a lack of aggregate demand. This allows the economy to stay afloat as those with assets enjoy increases in nominal wealth as long as more and more liquidity is injected into the system. But it hurts the economy in the long run by distorting market signals (wage, unemployme…

So, shorter summary: QE doesn't work.

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

#595

Post by astazangasta »

epa wrote: post #526
sounds wrote: post #504

Earlier quoted context omitted.

So what if you're one of those new hires (or hope to be one)? I'd say keep polishing your resume. If you dropped out of school, look for a school with low tuition that isn't University of Phoenix but finish your degree. Stay on your toes: work your way through to graduation, get internships each September (as much as you can). And though the retire-as-a-millionaire thing might have vanished, you'll land on your feet.

Build your own product now that generates revenue and profit. Make your own job.

What will you eat, old newspaper clippings? If we could all do this, VCs would not exist in the first place.

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

#596

Post by astazangasta »

ec109685 wrote: post #517
tryitnow wrote: post #501

Earlier quoted context omitted.

Gloomy, but likely correct. A lot of these current valuation numbers just don't make sense. The implied growth rates in many tech stocks is unrealistically high. The Bay Area's long-term employment prospects simply cannot support current home values or rental rates. Once public and private equity valuations drop a lot of software development projects are going to get cut and with them the jobs of many software engine…

>The Bay Area's long-term employment prospects simply cannot support current home values or rental rates. Why not? What are you basing this on?

Common sense? Median rents are $5500 a month. No one can afford that. A city can't exist if people can't live there.

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

#597

Post by ascorbic »

mrweasel wrote: post #108
Hermel wrote: post #99

Earlier quoted context omitted.

In Europe, xing is actually more popular than linkedin. So there is serious competition.

I think that's country specific. I'm in Denmark and I never heard of Xing.

UK here. Never heard of it.

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

#598

Post by roymurdock »

astazangasta wrote: post #594
roymurdock wrote: post #590

Earlier quoted context omitted.

Sure. QE pushes money into the supply side (banks) which goes primarily into rent seeking activities such as equity markets and real estate due to a lack of aggregate demand. This allows the economy to stay afloat as those with assets enjoy increases in nominal wealth as long as more and more liquidity is injected into the system. But it hurts the economy in the long run by distorting market signals (wage, unemployme…

So, shorter summary: QE doesn't work.

It works perfectly well in the short run, but it makes things worse in the long run, possibly necessitating (non-nuclear) war to boost aggregate demand through government spend (fiscal policy) and a reduction in the supply of excess labor.

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

#599

Post by jusben1369 »

astazangasta wrote: post #594
roymurdock wrote: post #590

Earlier quoted context omitted.

Sure. QE pushes money into the supply side (banks) which goes primarily into rent seeking activities such as equity markets and real estate due to a lack of aggregate demand. This allows the economy to stay afloat as those with assets enjoy increases in nominal wealth as long as more and more liquidity is injected into the system. But it hurts the economy in the long run by distorting market signals (wage, unemployme…

So, shorter summary: QE doesn't work.

QE works well. It's just limited in how much impact it can have because it's monetary policy. Fiscal policy is the other half of the equation and one that is much more politically charged. Bernanke did what he could with the tools at his disposal at a time when government was seized with deep partisanship. That's now coming home to roost as liquidity is removed from the system. Luckily, or appropriately, it's happening as unemployment is low and there is finally some upward wage pressure. You only have to look at many countries in Europe to understand what the US would have looked like had we not had the monetary firehose, with all of its imperfections, opened.

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

#600

Post by steven2012 »

astazangasta wrote: post #596
ec109685 wrote: post #517

Earlier quoted context omitted.

>The Bay Area's long-term employment prospects simply cannot support current home values or rental rates. Why not? What are you basing this on?

Common sense? Median rents are $5500 a month. No one can afford that. A city can't exist if people can't live there.

You say no one can afford it, but all the apartments are rented out.
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