[rthomas6]

Not really. Think about Facebook's stock IPO or Cisco during the .com boom. Also think about 1929. Excellent companies that make lots of money doesn't mean that they're under- or overvalued. A P/E (price/earnings) ratio of 900 means that the market is expecting Linkedin to be much, much more profitable than it is currently. For comparison, a normal-ish P/E is around 20. Linkedin doesn't have to simply sustain its level of profits, it has to grow, and grow extremely rapidly, just to justify the current price of the stock. So people buying the stock now think that Linkedin will eventually do even better than THAT. I disagree with those people.

It's not that Linkedin isn't an excellent company or isn't making lots of money, it's that it is overvalued in the market unless its profits somehow balloon. It's the same problem Facebook had with its stock IPO.

LNKD will eventually crash if it doesn't wildly exceed expectations. It's most likely a bubble.