Is this another brand bubble?

LinkedIn floated last week at 214 times its 2010 profit of $15.4m. Significantly cheaper than its Chinese equivalent Renren. But would you consider a sound investment a brand which claims in its float prospectus "we expect our revenue growth rate to decline, and, as our costs increase, we may not be able to generate sufficient revenue to sustain our profitability over the long term". Interesting comments in FT's Lex and The Week.

Microsoft also paid $8.5bn for Skype. Was it worth it? Informed commentators like Steve O'Hear on TechCrunch think not. Almost twice the amount Google was offering. More bravado than business sense?