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August 10, 2011

The Fall of Tech Giants On Wall Street

LinkedIn! IPO was super success, however Linkedin is learning the hard way to coming to the public markets, The market at large is getting mauled right now, but of all the big public tech companies we watch closely, none has been hit as badly in the last week as LinkedIn, which is down 25%.

Business Insider reports that AOL was saved at the end of the trading day from a complete disaster. The stock was off as much as 31% but it managed to bounce back, and only finish down 12% for the day.It missed on EPS by a mile with earnings this morning. Revenue isn't growing. It's pouring money into Patch, and that's not working.

The display ad revenue is up, but that's largely thanks to Huffington Post and TechCrunch, two acquisitions. Can it keep growing those properties? And can it get the rest of the properties to grow?

After a rough start to the year, Apple's stock has bounced back, even breaking $400 a share before pulling back.Apple had posted revenue growth of 82% on a year over year basis

While the stock has been on a tear, it's still arguably very cheap when measure on a trailing price to earnings ratio. Apple's PE is 15.3 right now, which is less than Google at 21.7, Amazon at 92.6, and Netflix at 66, to name three hot tech stocks. (It's better than Microsoft, which is at 10.)

For some context, in the most recent quarter Amazon had 51% revenue growth on a year over year basis. Google had 32% revenue growth, and Netflix had 48% revenue growth. (Microsoft revenue was up 8%.)