LinkedIn May Be Running Too Hot

The LinkedIn (lnkd) initial public offering was two years ago this month, and the stock is up more than 300% in that time. Lowered guidance after the most recent positive earnings report has taken shares off their highs and back below the 50-day moving average, and the stock is tentatively positioned above an important support level.

The weekly chart shows the steady move in the first 18 months of trading that formed a rising triangle. During this time, the stock advanced 166% from its IPO price, but the advance is less impressive if calculated off the close that day. A good portion of the overall share increase came this year -- the stock is up about 66% in the last three months. But since the price/earnings multiple is 83, management and the charts may be indicating that the stock has come too far too fast....221 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.