This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

LinkedIn: The "Other Social Network" (Update 1)

Stocks in this article: LNKD GOOG MWW DHX EBAY

Updated from 11:15 a.m. EST to provide risk factors listed in S-1 filing and updated share price.

NEW YORK ( TheStreet) - LinkedIn (LNKD) may not be as sexy as Facebook, but just as Facebook has proved a disruptive presence in advertising, the other social network has transformed the job seeking industry.

The Mountain View, Calif.-based firm reports its fourth-quarter results later this week, hot on the heels of daily deals site Groupon (GRPN).

"We continue to believe LinkedIn is disrupting both the online and offline job recruitment markets, and deeper corporate penetration and increasing member engagement will drive strong results going forward," J.P. Morgan analyst Doug Anmuth wrote in a December research report. He has an overweight rating and a $84 price target.

Jefferies analyst Youssef H. Squali, who rates the shares overweight with a $92 price target, believes that recent professional services hiring data from the Bureau of Labor Statistics bodes well for LinkedIn.

In particular, the analyst points to recent better-than-expected jobs data. "Hiring Solutions segment results should benefit from market share gains from traditional offline players (executive search firms) and strength in the professional services segment," Squali wrote, in a recent research report.

LinkedIn has emerged as increasingly disruptive presence, particularly when compared to other job placement services, a trend which may point toward strong fourth-quarter results.

Evercore Partners analyst Ken Sena wrote, "Strong checks on the quarter, which include data by Wanted Technologies, indications of share gains from Monster, and recent Indications from both Dice and CareerBuilder of continued robust growth in most sectors give us reason to believe that our $160 million net revenue estimation (up 95% y/y) for LinkedIn is doable." Sena rates shares equal-weight with a $70 price target.

That does not mean, however, that LinkedIn will remain the dominant player in online job recruiting. Sena notes that, although Facebook and Google do not currently have offerings in the professional job recruiting space, they may make inroads, "undermining the attractiveness of LinkedIn's professional social graph to investors."

In its S-1 filing, LinkedIn mentioned Facebook, Google, as well as Twitter as potentially competing against in the online professional networking space. "Other companies such as Facebook, Google, Microsoft and Twitter could develop competing solutions or partner with third parties to offer such products," the filing said.

The social networking site, which went public back in May, is scheduled to report its fourth-quarter earnings after the close of trading on Thursday, Feb. 9.

Wall Street analysts polled by Thomson Reuters expect the company to $159.7 million and earnings of 7 cents per share. For the full year, the company is expected to report $513.9 million in revenue and 31 cents per share.

LinkedIn shares have outperformed the broader market this year, up 23.16%, versus 6.97% for the S&P 500.

Shares of LinkedIn are off 1.3% to $76.76 in mid-afternoon Wednesday trading.

Interested in more on Linkedin? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends.

-- Written by Chris Ciaccia in New York

Readers Also Like:


Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,086.82 +56.61 0.31%
S&P 500 2,091.60 +9.72 0.47%
NASDAQ 4,810.5840 +37.1120 0.78%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs