Re:Analysts Wary of LinkedIn’s Stock Surge
by ScottBurson on Monday May 23, 2011 @02:09AM
(#2575111)
To know whether it's reasonable, you need to know not only the amount of revenue but also the revenue growth rate. I don't have the numbers in front of me, but my impression is that LinkedIn's revenue growth, while substantial, is not in the stratospheric territory that Google's was.
(There's profit to consider too, of course, but the business models of these two companies are similar enough that one would expect them to have similar margins.)
Turns out linkedin doubled revenue YoY.
http://techcrunch.com/2011/01/27/linkedin-files-for-ipo
Google (gross revenue) was at 3x. http://www.sec.gov/Archives/edgar/data/1288776/0001193125041...
All this is details. It's pretty clear that prices aren't crazily inflated.
Seems pretty reasonable.