Over the past 12 months, LinkedIn has made about 7 cents per share. At $100 investors are paying more than thousand times its last year earning per share, which resembles the days of tech bubble of 2000.
LinkedIn made $94 million in the first quarter of 2011, and its net income was $15.4 million in 2010. Thursday’s IPO made LinkedIn chief executive Reid Hoffman a billionare. His personal stake is now valued at $1.6 billion.