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.DL), 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.