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  • http://twitter.com/adwyce/status/72459443761197056 Adwyce

    LinkedIn: ROI quo vadis? http://bit.ly/m1MdfG

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  • http://twitter.com/lmikegarnett/status/72467798399516672 Mike Garnett

    LinkedIn: ROI quo vadis? http://bit.ly/kBHTCJ

  • http://twitter.com/gunnertech/status/72467807480184832 Gunner Technology

    LinkedIn: ROI quo vadis? http://bit.ly/kdxOp9 #socialmedia

  • http://twitter.com/alltop_social/status/72467811867426816 Alltop Social Media

    LinkedIn: ROI quo vadis? http://bit.ly/lO6FMN Social-Media.alltop

  • http://twitter.com/birdbathbuzz/status/72488351181180928 Chris Isaac

    LinkedIn: ROI quo vadis? http://ow.ly/1cOrvE

  • http://commetrics.com/articles/2011-trends-get-better-roi-with-facebook-twitter-and-youtube/ Urs E. Gattiker

     Dear Urs

    I like this post of yours particularly the links you have to other material in your Xing group on Social Media Monitoring – super.

    I agree, if shareholders are willing to pay such a high valuation, the company must be worth it. At least in principle.
    Nevertheless, I think LinkedIn, whilst successful, will likely not be able to pay investors back in any sort of way by paying out a decent quarterly dividend. 

    If we move into a recession again because of the Euro crisis and/or the US government debt (or we get something like 8% inflation again), these shares might be worth less than the paper they are written on.

  • Roberto

     Dear Urs

    I like this post of yours particularly the links you have to other material in your Xing group on Social Media Monitoring – super.

    I agree, if shareholders are willing to pay such a high valuation, the company must be worth it. At least in principle.
    Nevertheless, I think LinkedIn, whilst successful, will likely not be able to pay investors back in any sort of way by paying out a decent quarterly dividend. 

    If we move into a recession again because of the Euro crisis and/or the US government debt (or we get something like 8% inflation again), these shares might be worth less than the paper they are written on.

    • http://commetrics.com/articles/2011-trends-get-better-roi-with-facebook-twitter-and-youtube/ Urs E. Gattiker

      Thanks for this feedback Roberto

      We will see …. if the US mortgage crisis or the Euro trouble with Greece and other countries might change things.

      Let us just hope it will not end in another crash. 

  • Cecilia

    Yes, very interesting phenomenon, isn’t it?

    Urs, as you stated in your blog. If you had LinkedIn shares, you would have had partying the whole weekend. I love that too…
    Investment is very different than other type of work. We have to have that kind of mind-set in order to be in investment. Many times we have to take risk in order to get return. Sometimes, too logical or analytical won’t get us lots of things in life, especially return of our money or love?

    When I was in graduate school, my professor in my finance class calculated that the worst or most risky investment in California was Real Estate(housing), it was12 years ago. And a few very academically intelligent friends who are from Ivy league schools including Stanford university also claimed that the housing in San Francisco bayarea was bubbled, not worth their money to buy or invest. However, the past 12, 13 years in San Francisco bayarea almost all real estate appreciated 100% to 200% or more.

    Sure it all depends on exact location as well) All these super intellectual people lost many chances, not catching the waves not making money out of it. However, their jobs were not in investment industries. Therefore, it was not their faults predicting what might or might not happen.

    There are many control, uncontrollable or hidden issues when it comes to investment, or the value of companies. I am not part of the team who do mathematical analysis (or whatever methods) for financial/investment companies. I loved and still love investment, wanted to be a stock broker when I was a student, but now I am a investor, investing the good ones.

    Going back to “the bubbles” If we can catch the bubbles, and before they burst, then, we all can party many more years. (personally know some people made many millions from these bubbles at young age) Life is good, is’t it?! :) best wishes, Cecilia-

    • http://commetrics.com/articles/2011-trends-get-better-roi-with-facebook-twitter-and-youtube/ Urs E. Gattiker

      Cecilia

      Thanks so much for this thoughtful comment. I think the LinkedIn bubble is part of the social network IPOs (see also Facebook) that might be overvalued but may not affect other industries.

      Incidentally, the restrictions short selling of LinkedIn stock was lifted on
      Tuesday this week.  A short sale involves borrowing stock and
      selling it, in the hope that the price falls and it can be bought
      back more cheaply – generating a profit.

      Two things make this very interesting:

      1 – The social network business tends towards monopoly. People want
      to use the most popular social network, though there is scope for
      related niche applications like Xing being dominant in Germany,
      Turkey and some other countries.

      2 – Recent social network IPOs including the LinkedIn one have
      granted minimal voting rights to new shareholders.  Investors pretty
      much purchasing junk equity, just as they did with the Blackstone
      IPO

      What might prevent LinkedIn shares from loosing value by having its
      stock targeted by short sellers is that it has a small float.  Just
      10% – 9m shares – were sold during its initial public offering. 
      Hence, it might be too costly to put on a short.

      Let us wait and see.

    • http://commetrics.com/articles/2011-trends-get-better-roi-with-facebook-twitter-and-youtube/ Urs E. Gattiker

      Thanks so much

      I replied, of course…. close the deal pls. :-)

      Urs

  • http://twitter.com/describe4x/status/74957565464813569 Sharon

    LinkedIn: ROI quo vadis? http://bit.ly/lO6FMN Social-Media.alltop

  • http://twitter.com/devseo/status/77114391283236865 Alex Hall

    #socialmedia LinkedIn: ROI quo vadis? – http://su.pr/28k2S6

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