SmoothSpan Blog

For Executives, Entrepreneurs, and other Digerati who need to know about SaaS and Web 2.0.

The Bubble Has Begun With the Most Expensive Stock In America

Posted by Bob Warfield on May 19, 2011

Burning MoneyIt’s official, the current Bubble has begun with LinkedIn’s IPO.  It was declared the most expensive stock in America even before doubling which means its now clearly way past Bubble territory.  Exciting stuff!

LinkedIn’s PE is 62 times Apple’s, 50 times Google’s, but less than 4 times Salesforce.com’s.  Wow, AAPL and GOOG look like Value Stocks!

Stay tuned for more Bubblemania.  After all, Facebook and other high flyers are still sitting on the sidelines.  I wonder if anyone has ever calculated the amount of money on the sidelines at the beginning of a Bubble that is available as Bubble Fuel?  With the kinds of market caps these companies will get, you would think it will use up the fuel quickly.  Of course there will be some tendency to self-fuel as speculators jump in and out of these stocks pocketing profits and reinvesting in new securities that are earlier on the Greater Fool timeline.

How will we know when the Bubble is bursting?  Well, they always burst and the bigger they are the harder they burst, but you’d like to know just slightly in advance, no?

I remember the original dot cum bubble bursting.  I’d call the day it burst the day Webvan IPO’d and the stock went nowhere.  I had been given some IPO stock by my broker and it was flat to down.  It had all the right things in place for a Bubble IPO, Goldman backed it, yada, yada.  Just no profits and no real business.  At least LinkedIn has some profit this time.

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4 Responses to “The Bubble Has Begun With the Most Expensive Stock In America”

  1. Lance Kidwell said

    I remember the day the original burst. I had to do something for the CEO. I walked in and saw him bent over a trash can. I had heard someones calculation that he had lost somewhere between several hundred million to over a billion (on paper) in the big slide, so I assumed he was throwing up into the trash can.

    “Are you alright?” I asked.

    He turned around to reveal that he was just peeling an orange. “What? Oh… yeah it’s cool. It’s just numbers you know.”

  2. [...] Comments Lance Kidwell on The Bubble Has Begun With the …In Pictures | In Pic… on Efficient Marketing Means Doin…The Real Problem Wit… [...]

  3. [...] The Bubble Clock is TickingBy Bob Warfield on May 23, 2011 The incredible valuation of the LinkedIn IPO can only be interpreted as one signal:  the Bubble Clock has started ticking.  So long as it [...]

  4. [...] $100 million in capital raised at a $1 billion valuation, it’s tempting to write another Bubble Story.   While it’s undeniable that it would be hard to do that financing in the wake of the [...]

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