This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Social Networking Stocks to Watch

NEW YORK ( TheStreet) -- A look at the top social networking Web sites shows that Facebook reigns, with more than 800 million active users, while professional social network LinkedIn (LNKD - Get Report) accounts for more than 120 million visitors worldwide. Twitter grabs the third spot, with more than 100 million users; the new Google plus (GOOG - Get Report) comes in fourth with 20 million users.

Visitation to these Web sites is rising as social networking through mobile networks is climbing; it is estimated to exceed 550 million in 2011, and triple to 1.7 billion by the end of 2016. Analysts polled by Bloomberg foresee potential upside of 8% to 60% for these stocks, with buy ratings of 52% and hold ratings of 39%.

Below, the stocks are listed in ascending order of potential upside based on analysts' price targets.

5. LinkedIn is a professional social network with more than 120 million users across 200 countries and territories. Through this site, people can create, manage and share their professional identity online.

For the second quarter, subscriptions increased 61% from the year-ago quarter to 115.8 million members. Also, page views grew 80% to 7.1 billion from the second quarter of 2010. Revenue for the quarter increased to $121 million, up 120% from the year-ago quarter. Net income increased to $4.5 million from $4.3 million earlier.

LinkedIn recently announced reaching more than one million professional members in Belgium. Additionally, the professional network is expanding its presence in Germany by opening its first office in Munich. The office would support the company's growing membership of more than two million professionals across the German-speaking markets.

For the 2011 third quarter, revenue is estimated to range between $121 million and $125 million. Adjusted EBITDA is forecast between $9 million and $11 million. Revenue for the full year is expected to range from $475 million to $485 million, while adjusted EBITDA is projected between $65 million and $70 million.

Of the 10 analysts covering the stock, 30% recommend a buy and 50% rate it a hold. Analysts surveyed by Bloomberg forecast an average 12-month price target of $87.60, nearly 11.3% greater than the current price.

Note: Potential upside is based on analysts' price targets.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
AMZN $537.65 0.03%
GOOG $638.64 -1.10%
MMI $47.44 0.49%
LNKD $196.26 0.38%


Chart of I:DJI
DOW 16,852.26 +62.07 0.37%
S&P 500 1,993.23 +13.31 0.67%
NASDAQ 4,782.5220 +34.1610 0.72%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs