NEW YORK (TheStreet) -- TheStreet's Stephanie Link spoke with Colin Gillis, technology analyst at BGC Partners, to talk about LinkedIn (LNKD) after his firm initiated coverage of the stock with a buy rating.
Gillis says LinkedIn has a "wonderful" business, although he says the stock is not for everyone. "It's very expensive from a ratio basis," he said, "but it's a high growth name."
LinkedIn has three main businesses: recruiting, advertising, and premium subscriptions. When Gillis noted that LinkedIn only monetizes roughly 1% of its registered users, Link chimed in, "that's the million dollar question. How do they get it beyond that?"
Gillis also told Link that you should just "close your eyes," when asked about investing in LinkedIn for the long term. It is a very volatile name, where the stock rose or dropped more than 2% 49 times in 2012.
"This is a high-growth, high-quality company," he added.
-- Written by Bret Kenwell in New York
Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.