Eyebrows went up last week when the stock of a crappy Chinese video company, Youku (YOKU), soared after its IPO last week.
After all, here was a company with ~$43 million in revenue and ~$30 million in losses over the past year suddenly trading at a $5+ billion market cap.
For a few days, with the TV breathlessly covering this miracle new money machine, it was 1999 logic all over again (don't we know it): CHINA + INTERNET + VIDEO = BIIIIIIIIIIG!
But then Business Insider contributor Shane Farley rode to the rescue.
Specifically, he published a long analysis explaining why he thought Youku was the most overvalued stock in the universe. (Shane is short the stock, so he was talking his book, but others evidently agreed with him).
We published Shane's analysis on Friday morning (at the peak in the chart below). And, as you can see, Youku's stock quickly fell off a cliff.
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