The Gold Standard | If proof were needed…

… that the world of finance has again gone crazy, thanks in no small measure to the policy of record low interest rates and money printing, you have it now:

LinkedIn soared more than 90% to about $86.60 as it began trading on the New York Stock Exchange, giving the professional-networking site a market value of roughly $9 billion.

The offering of 7.84 million shares has surprised many across Silicon Valley and Wall Street, who say that investors are being taken in by an Internet bubble. The company made $15.4 million in 2010. [More here]

That gives you a P/E multiple on trailing 2010 earnings at 584.4 times.

Update: More on the insanity of LinkedIn valuations here and here.

DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.