CRAMER ON LINKEDIN (LNKD): “Outrageous!” “Ridiculous!” “Preposterous!”

Jim Cramer

[credit provider=”Jim Cramer” url=””]

Jim Cramer went off on the LinkedIn IPO this afternoon.He described it as “outrageous,” “preposterous,” and “ridiculous” and accused the underwriters of playing the same game everyone played back in the 1990s.

We certainly agree with Jim about the stock price (over $100 a share). We also agree with him about the hazards of the first-day pop, which are misunderstood and terrible for the company and investors. (LinkedIn’s mispricing screwed the company to the tune of $175 million).

We don’t agree that companies should be forced to sell a huge amount of stock just to sate the market’s demand (Cramer thinks the reason the stock popped is because underwriters sold so little of it). Any investors who are scarfing up LinkedIn at $120 or so a share because it’s “hot” deserve what they get. No one is forcing them to put in “market” orders.

(The vast majority of investors should never, ever even consider buying stocks like this. The government shouldn’t have to prevent them from doing it. They shouldn’t do it because it’s idiotic for them to do it: The risks are super-high, and they have no edge whatsoever.)

Anyway, here’s Cramer: