The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
We expect growth to continue, although at a slower pace, due to the larger base effect.
New features like LinkedIn Today, LinkedIn Swarm and LinkedIn Skill have beefed up the number of visitors to LinkedIn.However, competition from other online recruitment services and social media platforms is always increasing. LinkedIn's newest competition is from professional networking apps like BranchOut and Monster Worldwide's (MWW) BeKnown, which are leveraging Facebook's wide user base to expand business. Although we expect an increase in LinkedIn's average monthly unique visitors from 81 million in 2011 to around 215 million by the end of the Trefis forecast, Trefis members predict the unique visitor count will rise from 108 million to 300 million during the same period. The member estimates imply an upside of 11% to the Trefis price estimate for LinkedIn's stock. We currently have a Trefis price estimate of $30 for LinkedIn's stock, about 70% below the current market price of $101. We have explained in the past why we remain fundamentally bearish on LinkedIn.
New Features Boost LinkedIn's Visitor CountIn March 2011, LinkedIn introduced a new product, LinkedIn Today, which gives members customized news according to particular industries and according to what is being shared most frequently by the members. The company also extended this feature as an app for mobile phones, which should drive more traffic. During early 2011, it introduced other features like LinkedIn Swarm, which tries to answer the analytical question of what is popular and what is the most searched, similar to queries that appear on search engines like Google (GOOG). Another attractive feature is LinkedIn Skill, which helps members stay ahead of the competition by discovering hot skills other professionals are adding to their profiles.
Competition from Professional Networking Social Media AppsBranchOut, launched in August 2010, allows people to connect professionally on Facebook without granting access to others' personal profiles. It has become one of the largest professional networking services on FaceBook. Monster's BeKnown app lets people connect professionally on Facebook without mixing business and friends. With more than 500 million active users on FaceBook, these professional-networking focused social media apps have a potential to reach a large number of users. Our complete analysis for LinkedIn's stock is here. Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV