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

LinkedIn Surges: What Wall Street Is Saying

NEW YORK (TheStreet) -- LinkedIn (LNKD - Get Report) connections proved to be in high demand and helped boost the company's profits over the last quarter. LinkedIn's earnings beat Street estimates after its second quarter saw strong user growth, increased professional engagement and launch of new products leading to enthusiastic investors and a surging stock price.

Despite a controversy earlier in the quarter, LinkedIn faced a privacy rights lawsuit in June due to the company hacking its customers' external e-mail accounts, LinkedIn's business model proved to be strong. The company reported that the number of members increased 32% year over year.

The 300 million and growing user base supported revenue growth throughout the quarter. The site's provided recruiting tool, Talent Solutions, saw revenue increase to $322 million up 49% compared to second quarter 2013. LinkedIn's Premium Subscriptions, which helps users connect to careers and LinkedIn companies find talent among other career advantages, increased 44% year over year to $105.2 Million.

LinkedIn's revenue for the second quarter was $534 million beating analysts expectations of $511 million. The Santa Monica, Calif.-based company saw an increase of 47% compared to $364 million in its second quarter of 2013. LinkedIn reported earnings of 51 cents per share above analysts' estimates by 12 cents a share and up from 38 cents a share in the second quarter 2013.

Must Read: Why LinkedIn (LNKD) Stock Is Up in After-Hours Trading Today  

In an official statement released Jul. 31 with LinkedIn's second quarter report, Company CEO, Jeff Weiner attributed the leading professional network's profit growth to strategic moves in providing connections and subscription-based career assistance to LinkedIn's active online professionals.

"LinkedIn delivered strong financial results in the second quarter while maintaining investment in our member and customer offerings," said Weiner. "We made significant progress against several key strategic priorities including increasing the scale of job opportunities on LinkedIn; expanding our professional publishing platform; and continuing the strategic shift towards content marketing through Sponsored Updates."

LinkedIn profiting off of professionals searching to advance their careers saw success when integrating Sales Navigator, a new enterprise product tool for social hiring, into its network. Analysts were optimistic about the future for the latest update of Sales Navigator, which saw a bump in price from $700 a year to $1,200.

Investors responded with enthusiasm with shares rising as much as 13% after the results on Thursday. Shares were rising 9.97% to 198.65 on Friday.

Proving investors' previous concerns about revenue wrong, LinkedIn forecasts revenue ranging between $2.14 billion and $2.15 billion for the full year.


Here is what analysts have to say about LinkedIn's results:

1 of 2

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
LNKD $121.96 -0.93%
AAPL $93.15 -0.10%
FB $117.30 -0.43%
GOOG $703.74 0.33%
TSLA $209.77 -0.83%


Chart of I:DJI
DOW 17,648.59 -12.12 -0.07%
S&P 500 2,048.45 -2.18 -0.11%
NASDAQ 4,714.6390 -2.4550 -0.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs