Your LinkedIn Lesson: Quick, Move to Silicon Valley

The dot-com madness is upon us again: Brett Arends
By John Johnson,  Newser Staff
Posted May 19, 2011 4:08 PM CDT

(Newser) – Investors went nuts over LinkedIn's IPO today—it more than doubled to close at $94.25 per share. What might you take from this? "Quit your job, move to Silicon Valley, and start a venture to compete with LinkedIn," writes Brett Arends at MarketWatch. After all, this madness signals that "the new dot-com mania may have some way to run." How else to explain why LinkedIn, which is, after all, a glorified resume site with modest revenue, could be valued at $10 billion? That's b-as-in-boy billion.

story continues below

Arends notes that the valuation is 660 times greater than the company's net income of $15 million last year. Apple, by comparison, trades at 16 times earnings. "Cash in while you can," deadpans Arends. "Resume-site.com? Resume-world.com? Resumeszone.com? GoDaddy says these domain names are all free, for just $12 a month. Or pick some goofy name out of a hat. But make sure to get out in time." These bubbles tend to go pop after a while. (Read more LinkedIn stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.