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... and remember guys, the stock price is just what the public is willing to pay for it, and is not directly bound by any fundamentals. It's not LinkedIn's faul
by rbranson 15y ago
... and remember guys, the stock price is just what the public is willing to pay for it, and is not directly bound by any fundamentals. It's not LinkedIn's fault that their stock is overvalued.
- deleted 15y ago[deleted]
- rbranson 15y agoThe price is set based on market analysis. That's what the company thought they could get for it. The transaction requires willing participants.
- sc68cal 15y agoTrue, though it may be that some participants are simply willing to buy the stock with the expectation that they can sell it quickly, for more than they bought it for.
- shn 15y agoThink about the market price of houses before the crash, each buyer and the seller were willing to make transaction. We all know the result. Fundamentals are important as well as prospect of the company. So we should talk about what is that prospect that can make company's current market valuation rational.
- zb 15y agoYou may say it's not their fault, but if you log in to LinkedIn today you'll notice that all of the "news" articles - now placed in an even more prominent position than normal - are about how underpriced their stock is. Entirely coincidentally, I'm sure.