It's in the stuff I highlighted at the beginning of the year -- 31% ago -- when I called LNKD
The Riskiest Sure Bet of 2013
When you see a company like LinkedIn make a smart move into content -- as it did around the time it hired its executive editor, Dan Roth, from
fame -- you absolutely must pay attention. I have the advantage, I guess, of knowing who Roth is because I work in the same industry. That move, though largely unreported by Wall Street analysts and the media, was big and an illustration of how the company operates across its business.
Rarely do you see the finance types hitting hard the focus of my article from earlier in the year where I translated what Weiner said on the conference call before last in response to the only question he was asked about content:
Translation: We're giving people more reasons to visit LinkedIn. Increased visits lead to greater adoption of our premium services. In other words, LinkedIn operates a stickier ecosystem today than it did six months or a year ago.
As LinkedIn becomes more useful, it, using Marissa Mayer's words with regards to Yahoo!'s (YHOO) information and entertainment platform, becomes a "daily habit" for current and prospective members, thereby increasing the likelihood that these users will click an ad or buy a premium subscription.
Generally, it's not a good idea to jump on such a massive move. Always makes sense to wait for a pullback. However, with LNKD -- especially if you're already in a profitable position -- this might be as good a time as any to buy more.
Written by Rocco Pendola in Santa Monica, Calif.