March 13, 2013
Buying into sky-high valuations can be extremely dangerous. Just ask anyone who bought Facebook at the IPO. The stock has taken a beating since and remains below its offering price as of this writing.
Knowing that, why would anyone want to buy peer LinkedIn (NYSE: LNKD ) , which not only is measurably smaller, but trades for an astounding 900 times trailing earnings? The stock is up more than 50% year-to-date and has nearly doubled since its debut. Surely the rally is coming to an end, right?
Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova isn't so sure, and he explains why in this video interview with the Fool's Alison Southwick. Please watch, and then leave a comment to let us know what you think.
For further analysis of the social media landscape, I invite you try our newest premium research report, in which we tell you whether there's anything to "like" about Facebook's prospects right now, and whether the stock deserves a place in your portfolio. Access your report now by clicking here.