No one is talking about acceleration and social leverage. Everyone is talking the terms overvalued, business model, revenue and today’s profits.
There have been so many dumb and SEO driven blog posts about LinkedIn $LNKD and I am happy to have been baited by a few because that means most of the world was too and is in a state of fear and cynicism.
There have been two great blog posts. Sarah Lacy for Tech Crunch and one from Tadas at Stocktwits’ own Abnormal Returns who created a linkfest. Spend 20 minutes and read them thoroughly and you will be caught up.
While everyone complains about the bankers and who made what and why…lean back and think about the opportunities ahead.
A while back I had little use for LinkedIn and would say so on my blog. Two weeks ago I said I would happily pay $3 to $4 billion for the company and had orders in never filled. I use LinkedIn when I need it and it never lets me down. It is full of magic and utility. At $10 billion, the magic and utility of LinkedIn is not for my portfolio. I will hunt elsewhere but watch the price of LinkedIn closely.
I have a holding Company called Social Leverage that I started in 2008 because I wanted to invest everything I had in the Megtrands of social, global, viral, data, social graphs and mobile. I did not come up with this on my own, but from years of reading people earlier and smarter than me and forming my own thesis. These megtrands are all happening together and they are creating ACCELERATION for companies that get the product and market fit just right.
Just three years later and there is an exponentially higher possibilities because of how fast mobile and cloud have been accepted. The public will always overpay for this possibility, especially when ‘pitched’ by bankers and brokers.
When it happens…it is happening more and more, you get some silliness.
Be careful if you are buying and avoid if you can’t get your head around the patterns and acceleration thesis, but stop talking overvalued and shorting. I have heard you all before and you are never right with your timing.