just wanted to add, i don't like to see anyone lose money but these guys will go long and buy millions of shares, shorts will never win.
The P/E ratio for LNKD is above 1,000. How can this be possibly justified? Anyone remember the crazy dotcom era of late 1990s when P/Es like this were considered "normal", i.e. it was the number of eyeballs that mattered NOT revenue, profitability or the business model. They told you this is "the new economy" ... if you didn't get it, you were a dinosaur, etc. etc. guess who had the last laugh !
Anyone who thinks LNKD is hyped up to stratosphere can profit from shorting it or buying put options on it. I am going the puts route.
Sentiment: Strong Sell
LNKD is the biggest pig on the market, deserves to be $15.
HOWEVER< with institutional ownership at 85%+, the big boys can control the valuation of their holdings by simply bidding up the small remaining float there is. This stock really is controlled by the trading arms of the major funds and banks.
As has been said, eventually these positions will grow stale and they will want more return. For now though, its hard to short at these levels. Mgmt is so institutional friendly I believe they let loose the idea to HF guys that they would beat, let em crush the shorts, and the downside since earnings is just the Hedgies taking profits.
It will go up again, before it burns to the ground. Long term sell, short term prob a buy.
Just a matter of time until LNKD falls apart. Yes the gamblers may take it to 200+ before it drops to 30. Anything is possible, just look at the NFLX insanity of last 3 years. A lot of people were right about shorting that, but that shorted too many shares at too low prices so they got burned. The right approach is to start with small lots, and ADD more shares as it goes higher. That's what the pros are doing with EVERY hype stock like this.
Sentiment: Strong Sell
As the numbers fade and their base gets stale, longs ,like the insiders , will head for the exits. Not attractive as an acquisition candidate since it would be like buying a realtor chain at the top of the real estate spike.
True, but when will that happen? They just raised guidence a few weeks ago so the stock has support for at least another quarter. I see no reason why this won't head higher given the way the market has taken off lately. All boats float in a rising tide after all.