Is There A Bubble In Linkedins Stock Price?
Recent academic work has developed a method to determine, in real time, if a given stock is exhibiting a price bubble. Currently there is speculation in the financial press concerning the existence of a price bubble in the aftermath of the recent IPO of LinkedIn. The authors analyze stock price tick data from the short lifetime of this stock through May 24, 2011, and they find that LinkedIn has a price bubble. It has been well documented in the financial press that a methodology is needed that can identify an asset price bubble in real time.