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Comment by kevinpet | Hacker News Reader

If by "crushed in sell-off" you mean "declined roughly as much as the market as a whole", then that's true.

This is untrue on a percentage basis.

lnkd: -14% djia: -3.75%

They declined as much as lots and lots of other normally-volatile stocks that are not recent IPOs. Making the story about recent tech IPOs is uninformative at best.

The dow jones doesn't work like that. The Dow % doesn't reflect the average % downwards of its parts, nor does it necessarily represent the market as a whole.

    Citigroup -15%
    Bank of america -17%
    B&N: -11%
    GE and Cisco -5%

etc

> The Dow % doesn't reflect the average % downwards of its parts

It does, its weighted parts that is.

The point is that these stocks are underperforming with respect to large cap companies and thus the market at large. The s&p is down under 5% today.

msft -3.5% aapl -3.38% hpq -4.4% ibm -2.2%

% up/down does not provide valuable data. If you have access to a Bloomberg terminal take a look at the free-float turnover. Shocking

LNKD has had ~22% of its float trading on average every day for the past month. What do you find special about today?

LNKD has a free float of c. 8,250,000 shares or c. 8% of FDS. Average daily trading volume up to August 3rd, and adjusted for underwriting: 1.62m. Since last Thursday (earnings call), when LNKD dipped c. 5%, trading volumes have been 102%, 90% and 67% above the average daily volume. So then, 40%, 37% and 33% of its free-float, for August 4, 5 and 8 respectively. In just under three trading sessions over 100% of the free float has changed hands. What don't you find special?

Yes, but based on the 1.62m avg volume, that is ~20% changing per day on average. So on average 100% of the free float changes hands every 5 sessions. And now it did that in 3 sessions.. But that doesn't indicate to me everyone suddenly dumped it today. It's been churning over 20% every day. If you look at P or Z there is nothing much going on there. LNKD is just crazy active to begin with, only amplified by recent events.

Indeed, 5 to 3 days might seem close/similar, but 5 days is 66% slower turnover than 3 days. IMHO, this data is representative

What does the free-float turnover mean/represent?

the % of the capital/shares changing hands + if compared with avg daily trading volumes, the speed/time at which investors want to get rid off the stock

Well, presumably, there are just as many players who want to acquire the stock, so while it's a good indicator of unusual market activity, it's not a doomsayer per se.

the more volatility -> the higher HFT intensity (thus -> the more volatility, repeat loop ...)

Ahhh thanks!

You're on the right track, but it makes more sense to compare lnkd to the NASDAQ, which is the technology exchange.

Kevinpet, I don't know where you get market data from. Here are the facts (@1:59pm):

The market: NASD -4.44%, DJI -3.56% Recent tech IPOs: LNKD -14.63%, P -7.91%, Z -6.00%

Source: Google Finance

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