Summary
- Despite beating expectations, it still trades for over 100x earnings!
- Will talent solutions be the Trojan horse that hurts the shorts?
- Stay on the sidelines but short if you see these 3 signs or a Facebook entry into the market.
Linkedin (NYSE:LNKD) released results yesterday after the close. They both beat expectations and provided above consensus guidance. Specifically, revenue reached $880 (up +37% yoy) with EPS at 78 cents (a 32 cent beat), while guidance was for $845-$850 revenue and EPS of 74 cents (vs consensus of $846 and 67 cents). The bears would quickly point out that despite these figures, the company is still trade at above 100x earnings. So let’s take a closer look and see if we should be short the stock.
To most people LinkedIn is a glorified resume site, but apparently there is more to it than that.
Below is a table provided from LinkedIn’s 10k.
To read the entire article go to: LinkedIn: An Overvalued MySpace Or A Must-Have Product?
