The Hello Bar is a simple web toolbar that engages users and communicates a call to action. Is LinkedIn Really Worth $9 Billion? Here's Comes Another Tech Bubble [INFO-GRAPHIC] | Michael Priceless

Article written


Is LinkedIn Really Worth $9 Billion? Here’s Comes Another Tech Bubble [INFO-GRAPHIC] 0

LinkedIn just went public last week. The IPO was valued at $45/share and by the end of the trading day the value doubled giving LinkedIn a value of $9 Billion. But is LinkedIn really worth $9 Billion?

If you are placing the valuation on LinkedIn based on its member base of 50 million people, then Facebook who has 13 times that amount would be worth $117 Billion. That’s quite a big valuation for a business who hasn’t come close to reaching profitability yet.

I realize of course that valuations for Internet companies aren’t just based on their number of members. It’s based on something even dumber… Speculation. It’s that pesky little problem that caused the tech bubble of the 90′s when everybody was rushing to jump on-board the dotcom boom. The massive speculation and over-valuation of companies led to a huge tech bubble.

This is sadly happening all over again. put together a great Info-Graphic that discusses LinkedIn’s road to the IPO.

Check it out:

*click to image enlarge

Source: The Credit Score Blog

If you liked this post, please share it on your favorite social networking site.
Follow Me On Facebook

What Did You Think About This Post?

subscribe to comments RSS

There are no comments for this post

Comment Rules:

Make like ice and chill! If you have something nice to say great! If you have something mean to say, don't waste your time. Your comment will be auto-deleted. Full comment policy provided here

Please, feel free to post a comment

* these are required fields

Follow Me: Facebook | Twitter

"); var textCenterAttr = (50 - $("#cftext").height()) / 2; textCenterAttr = textCenterAttr + 5; $("#cftext").css("top", textCenterAttr + "%");