LinkedIn Corp (LNKD): Today's Featured Internet Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

LinkedIn ( LNKD) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.2%. By the end of trading, LinkedIn fell $1.14 (-1%) to $112.89 on light volume. Throughout the day, 1.4 million shares of LinkedIn exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $111.58-$114.30 after having opened the day at $113.36 as compared to the previous trading day's close of $114.03. Other companies within the Internet industry that declined today were: China Finance Online ( JRJC), down 3.6%, Zynga Inc Class A ( ZNGA), down 3.5%, support.com ( SPRT), down 3.4%, and Sify Technologies ( SIFY), down 2.5%.
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LinkedIn Corporation operates an online professional network. LinkedIn has a market cap of $10.02 billion and is part of the technology sector. The company has a P/E ratio of 766.4, above the S&P 500 P/E ratio of 17.7. Shares are up 82.4% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate LinkedIn a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates LinkedIn as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

On the positive front, Remark Media ( MARK), up 5.5%, Vipshop Holdings Ltd ADR ( VIPS), up 5.3%, Sohu.com ( SOHU), up 2.9%, and Bankrate ( RATE), up 2.5%, were all gainers within the internet industry with SINA Corporation ( SINA) being today's featured internet industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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