LinkedIn IPO sparks dotcom fears

Investors reluctant to seize growth opportunities as social media firm's flotation sparks technology bubble fears.

The LinkedIn flotation brought a number of uncomfortable reminders for long-term investors in the tech sector. There was the huge valuation – $4.25bn – on a relatively small sales base – £243m per year. There was the intense excitement, which saw the share price double on its first day of trading. There were all those optimistic future earnings projections. Surely it was the technology boom all over again? The LinkedIn listing has come on the back of a significant run of performance for the IMA Technology & Telecommunications sector, which is ahead of any of its peers over three year...