LNKD catches cold, global travel sites suffer

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It looks like some profit taking going on after LinkedIn's spectacular IPO, but news in the Web travel niche is spreading the red ink to a few once-bullish Asian names. LinkedIn ( LNKD , quote ) is plunging 9% this morning as traders digest Friday's surge from the company's IPO price of $45 a share. LNKD is of course still up 88% from its debut, so is not really feeling much pain yet. But its IPO is encouraging dot-com plays around the world to take advantage of the buzz and price their deals while the pricing is good. This is a warning sign of danger on the tracks. For example, MakeMyTrip ( MMYT , quote ), the Indian equivalent of a Priceline ( PCLN , quote ) is selling another 6 million shares -- worth $185 million -- to cash in. Why not? Valuations are absurd and MMYT is already priced at a blistering 145 times earnings. You do not need to make money these days to sell your stock, right? Maybe not. MMYT is down 8% this morning. And unlike LNKD, MMYT does not have a massive amount of built-in appreciation to spare. As of today, this stock is now trading under where it ended its first day on Wall Street, and is only up 13% from where it priced back in August: Chinese equivalent CTrip ( CTRP , quote ) is down 4% as well. Bad day for the Web? For emerging markets stocks? For emerging markets travel sites? Yes.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: CTRP , MMYT

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