But, the market for bubble stocks seems to be alive and kicking.
LinkedIn (LNKD) just went public at 1,000 times earnings. Yeah, its trailing P/E is 1,000!
Even some established companies are ridiculously expensive. Salesforce.com (CRM) is currently trading at a trailing P/E of 300 and a forward P/E of 75. I can’t imagine who’s buying the stock at this level.
The CEO and other insiders are dumping stock like its going out of style. In the past year, they’ve sold $234 million worth of stock. And they’re continuing to sell it. Reminds me of CountryWide insiders selling the stock before the real estate bubble burst in 2007.
Here’s a funny video by someone who shares my disbelief about investing in Salesforce.