LinkedIn: Expensive And Unattractive?

Since the beginning of 2012 till the end of April this year, the shares of the leading professional social networking site LinkedIn (NYSE: LNKD) soared rising by nearly 200% as its price-earnings ratio, or P/E, climbed to nearly 1,000. Then it released its results for the first quarter of 2013 which showed strong profit growth but gave lackluster guidance which caused a 13% drop in its stock on Friday, 3rd May. The business has delivered several strong quarters in the past; therefore the markets were expecting greater things from them in the future.