Weekly Review-LinkedIn: Social Media Bubble or Next Google?

by Ray

Shoeboxed.com - Scan Receipts and Business Cards

Yesterday was a historic day for social media companies. LinkedIn became the first social media company to go public and trade on NYSE. Although I find LinkedIn a very useful tool and believe it has some potential, the valuation is well in the bubble territory. The IPO was set at $45, but it started trading over $80 and closed just above $94. LinkedIn’s closing price gives the company a market cap of over $9 Billion, which is equivalent to over 37X revenue and over 590X earnings of 2010 (15.4Million earnings on $243Million revenue). Is this the beginning of the social media bubble or will LinkedIn be the next Google? I guess we’ll have to wait and see.

Dealing with the Canada Revenue Agency @ The Blunt Bean Counter

Stock Chart Reversal Patterns – Wedge and Triple Tops @ Million Dollar Journey

Smart Investing is Boring @ Michael James on Money

The Greatest Real-Estate Idea Never Sold @ Jason Zweig, WSJ

What Makes a Cool Retirement Job? @ Wallet Pop Canada

Extreme Couponing? 5 Reasons Why I’ll Pass. @ Wise Bread

Have Investors Learned Anything From the Tech Bubble? @ Canadian Capitalist

What if you saved nothing? @ Jonathan Chevreau, Financial Post

Creating a Budget: Money Management 101 @ Gen X Finance

Index Investors Can Be Aggressive Too @ Oblivious Investor

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Carnival of Wealth hosted @ Personal Dividends


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{ 3 comments… read them below or add one }

Canadian Capitalist

Thanks for the mention Ray! Have a great weekend!

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Michael James

LinkedIn seems to be priced for perfection, which should be a warning to investors. Thanks for the mention, Ray.

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Jenna, Adaptu Community Manager

Thanks for the reading list!

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