LinkedIn LNKD -0.04% is another hot stock that has overshot its fair valuation. So far this year, LNKD is up 117% while the S&P 500 has advanced 19%. LNKD is a high-momentum stock in a popular sector, so investors are turning a blind eye to its competitive weaknesses and high valuation.
Most people are aware that LNKD is expensive compared to its current earnings, but few people seem to aware of its off-balance sheet liabilities and the sky-high level of profit growth that would justify its stock price.
While LinkedIn certainly offers a useful service and boasts an impressive user base, it has a number of formidable competitors in the fields of professional networking and publishing....
I disconnected just last week after reading a very critical piece in the Huntington Post. For three years, I spent at least 15 minutes a day managing a couple groups on L/I, updating, communication by email to colleagues and friends through their "middleman" service, relinquishing all my privacy (outside of the NSA of course) to people I don't know and who don't pay me. It's #$%$. You give them your information, and they turn around and sell it to recruiters for up to $10k per year each. And it will NOT help your career, and probably hurt it. Don't trust them. First thing in the morning I am taking a short position. This company is the darkest of the darkness of Silicon Valley.