called it: http://news.ycombinator.com/item?id=2563481
should have put a lot of money on that. I think it will hit $18-20B market cap in no time
LNKD IPO opens huge at $83
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Re: LNKD IPO opens huge at $83
#12called it: http://news.ycombinator.com/item?id=2563481 should have put a lot of money on that. I think it will hit $18-20B market cap in no time
You couldn't have actually put a lot of money on it (unless you bet one of your friends, or in the unlikely case that you or your family member works for LinkedIn). The trick with IPOs is that even if you had the shares earlier, you couldn't sell them today because of the six month lockup period. The only way for you to get in would be right now at ~$80.
Re: LNKD IPO opens huge at $83
#13Round again we go... It's so disappointing to watch... But it's not a bubble if we're able to tell it's a bubble, right?
Shouldn't you be elated? If this is a repeat, just do what you wished you had done the first time around and Step 3. Profit!
Re: LNKD IPO opens huge at $83
#14Round again we go... It's so disappointing to watch... But it's not a bubble if we're able to tell it's a bubble, right?
Latest NPR Planet Money podcast episode was about bubbles, they interviewed a university professor that was running experiments on his students. They had a fake stock market with only one stock on it that would have a random dividend of either $0 or $2, so $1 on average. Students were given money to invest in the stock market. Running this experiment apparently over multiple courses, even in this small market there would be bubbles.
He brought up one such bubble in a lecture in front of the students, explaining to them that their investment made no sense considering the average dividend. He expected this explanation to crush the bubble since now everyone was aware of it. What happened instead was students going "wow, a bubble, I must get in on it!" and the stock just going even higher.
Re: LNKD IPO opens huge at $83
#15LinkedIn made $15 million dollars last year, and they just raised $660 million dollars out of the gate in this IPO. And, this IPO values LinkedIn at somewhere close to 6.5 billion dollars. A valuation of 6.5 billion dollars on $15 million net income. Let that sink in.
Might be a nice time to short, that is if there is someone willing to be on the other side of that trade.
Re: LNKD IPO opens huge at $83
#16Round again we go... It's so disappointing to watch... But it's not a bubble if we're able to tell it's a bubble, right?
People play roulette even though it's easy to calculate the casino's advantage.
Re: LNKD IPO opens huge at $83
#17Suppose there is a tech/social web bubble, is there anything anyone would advise for starting your own startups? E.g:
stick with the day job;
bootstrap rather than take money;
postpone and launch in 2 years;
get in fast while the hype is still there?
Any startup survivors from the last one wish they'd done things differently?
Re: LNKD IPO opens huge at $83
#18Earlier quoted context omitted.
At times like this I'm tempted to short the stock, or at least wait a month or longer until there's sufficient shares to short and not immediately get squeezed. It's just that unlimited downside, investor euphoria on social networking, and volatility makes me too nervous to do it.
If the unlimited downside scares you, why not buy put options?
I think Options won't be available until May 27th so that they can count the # of actual shareholders, etc.
Re: LNKD IPO opens huge at $83
#19Almost $100/user, not even including active users... that is insanity.
If* LinkedIn becomes a key part of most companies' recruiting process, then it's undervalued.
(* Yeah yeah, right now it's not)
Re: LNKD IPO opens huge at $83
#20LinkedIn made $15 million dollars last year, and they just raised $660 million dollars out of the gate in this IPO. And, this IPO values LinkedIn at somewhere close to 6.5 billion dollars. A valuation of 6.5 billion dollars on $15 million net income. Let that sink in.
If you read the IPO Filing with SEC, LinkedIn is pouring a lot of there revenue back into company in the form of research and development.