LinkedIn Now has a Price-Earnings Ratio Making Pets.com Blush

If you were playing stocks in 1999, the LinkedIn (NYSE:LNKD) IPO should be causing flashbacks that would make a Woodstock attendee blush. The social media company has just launched the largest initial public offering since Google (NASDAQ:GOOG), but the insanity is much more intense.

If you thought LinkedIn was fully valued at $45, you’ll really hate it at over $100. Yup. I said $100. That’s where it’s trading as the momo morons keep trading this stock higher on Day 1 of trading.

With 94.5 million shares and $8 million in net income (pro rated annualized), LinkedIn earns $0.84 a share. At today’s stock price high of $122.70, that puts LinkedIn’s Price-to-Earnings ration at a mind-numbing 1460. Pets.com is blushing in its grave.

In fact, within a few hours of the initial public offering, LinkedIn (NYSE:LNKD) already made the list of The Top 10 IPO Stock Performers This Year. Whether they remain on the list is another story.

The WSJ notes: “The company expects its revenue growth rate to slow and warns that it won’t be profitable in 2011 as it invests in what it calls future growth, such as technology and product development. It also warns that it expects that its results in the future could become more cyclical and seasonal.”

Party poopers! Don’t let all that stuff about slowing growth distract you from the euphoria of watching a ticker spike. Just tell those old fogies to look at what happened to everyone who chased the dotcom stocks in 1999. Oh, wait. That ended badly. Well, never mind. Enjoy the show.

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