Is there a bubble in LinkedIn's stock price?
Robert Jarrow, Younes Kchia, Philip Protter
TL;DR
This paper applies a real-time bubble detection method to LinkedIn's stock, analyzing its short-term price data and confirming the presence of a bubble following its IPO.
Contribution
It demonstrates the effectiveness of a recent real-time bubble detection method on a high-profile IPO, providing empirical evidence of a bubble in LinkedIn's stock.
Findings
LinkedIn's stock exhibited a price bubble after its IPO.
The bubble detection method successfully identified the bubble in real time.
Empirical analysis confirms the presence of a bubble in LinkedIn's stock.
Abstract
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. We analyze stock price tick data from the short lifetime of this stock through May 24, 2011, and we find that LinkedIn has a price bubble.
Peer Reviews
No public reviews on file for this paper yet. If you reviewed it on a platform where reviews are public (OpenReview, ICLR, NeurIPS, ICML), you can paste yours below so the community can read it here.
Videos
No videos yet. Explain this paper in a talk, walkthrough, or lecture? Add one.