LinkedIn: An Overvalued MySpace Or A Must-Have Product?

November 2, 2015 By Sophocles Sophocleous

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?

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fatalpha.com is not operated by a broker, a dealer, a registered investment adviser, or a regulated entity. Under no circumstances does any information posted represent a recommendation to buy or sell a security. In no event shall fatalpha.com, Sophocles Sophocleous, FATALPHA LTD, or any affiliates or associates be liable to any member or guest for any damages of any kind arising out of the use of any content available on the website. Past performance is a poor indicator of future performance. All the information on this site and any related materials is not intended to be, nor does it constitute investment advice or recommendations. All materials and information you obtain here are exclusively for informational purposes and does not constitute an offer or solicitation to provide any investment services to investors based in the U.S. or elsewhere.