Short sellers set to target LinkedIn

Social networking giant LinkedIn is set to see its share price come under pressure when restrictions on short selling the stock are lifted tomorrow, according to the FT.

LinkedIn's share price more than doubled as it entered the market last week, but is expected to tumble from its current price of $93.09. Short sellers are set to bet on the share price falling in the view the firm's valuation has become overstretched and its longer-term growth prospects are vulnerable to the threat of a technology bubble. The FT quoted a broker who said the social media company's stock has been overbought and will witness a price decline as soon as traders are able to short it. Last Wednesday LinkedIn became the largest flotation of a technology company since the d...