LinkedIn (LNKD) the most hyped stock of the Social Media Stocks, and definitely the most volatile. The stock took the market by storm when it more than doubled on the day of its IPO with a mindboggling market cap of nearly $12 billion and a price of $122.70. The stock then declined by nearly 50% in approximately one month, only to recover with very strong gains.
There have been many analysts to warn investors of this stock because of its high valuation compared to its fundamentals. Yet, because of its fast growth, investors have ignored and have continued to buy the stock regardless of its high valuation. They see the true value here.
There is more here then just fundamentals at work here, and what will the growth look like when the economy turns around! Investors see this potential as well as further acquisitions.
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