LinkedIn Corp (LNKD): Internet's Featured Daily 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 $5.65 (-3.1%) to $175.83 on average volume. Throughout the day, 2.4 million shares of LinkedIn exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $174.38-$182.29 after having opened the day at $182.25 as compared to the previous trading day's close of $181.48. Other companies within the Internet industry that declined today were: VirnetX ( VHC), down 10%, Friendfinder Networks ( FFN), down 3.6%, Synacor ( SYNC), down 3.4%, and TechTarget ( TTGT), down 3.1%.
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LinkedIn Corporation operates an online professional network. LinkedIn has a market cap of $15.64 billion and is part of the technology sector. The company has a P/E ratio of 919.3, above the S&P 500 P/E ratio of 17.7. Shares are up 52.4% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate LinkedIn a buy, no analysts rate it a sell, and 14 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 premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Net Element International ( NETE), up 7%, ExactTarget ( ET), up 6.6%, Internet Initiative Japan ( IIJI), up 4.3%, and Local ( LOCM), up 3.7%, were all gainers within the internet industry with Groupon ( GRPN) 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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