Must Read: Warren Buffett's 10 Favorite Growth Stocks
LinkedIn is down -0.9% to $168.49 in pre-market trading on Monday.
The firm believes that the stock's recent pullback makes it an even more attractive investment and cites potential increased revenue from ads and subscriptions as a major driver for the social media network.
"In our view, the recent stock pullback on growth and margin concerns has created an attractive entry point, with trends set to remain strong driven primarily by share-of-wallet gains in recruitment and better monetisation of mobile traffic," said Atlantic Equities. "With 277 million members the company has a secure position as the leading professional social network, with major revenue opportunities in recruitment, advertising and subscriptions."
- In its most recent trading session, LNKD has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 67.1% when compared to the same quarter one year ago, falling from $11.51 million to $3.78 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, LINKEDIN CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for LINKEDIN CORP is currently very high, coming in at 87.06%. Regardless of LNKD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LNKD's net profit margin of 0.84% is significantly lower than the industry average.
- You can view the full analysis from the report here: LNKD Ratings Report