LinkedIn (LNKD) shares jumped by 11% Friday, closing at $240.89, a day after the business networking site reported a strong financial performance for its third quarter.
RBC Capital analyst Mark Mahoney, who has an outperform rating on the stock and a price target of $245, noted that "LinkedIn has been one of the most successful Internet IPOs of the past several years, markedly surpassing its peer group."
LinkedIn was taken public on May 19, 2011. It closed at $94.25 after its first day of trading -- more than double its IPO price of $45.
LinkedIn, which is based in Mountain View, Calif., on Thursday reported total revenue of $780 million for its third quarter, 37% more than the amount it reported for the comparable period of 2014. Analysts had forecast revenue of $756 million. Earnings of 78 cents a share exceeded analysts' estimates of 46 cents a share.
"LinkedIn delivered strong results in the third quarter and recently announced several products focused on delivering increased member and customer value," said Jeff Weiner, CEO of LinkedIn, in a release. "Our commitment to investing in our long-term roadmap continues to lay the foundation for future growth of the company."
Weiner said the company, which has more than 400 million members, "added a number of enhancements across our member value propositions during the quarter, including replacing the email inbox with a new messaging experience, expanding the publishing platform to include German, French, and Portuguese languages and developing the next generation of LinkedIn's mobile flagship experience."
LinkedIn currently has more than four million active job listings, compared to 1 million a year ago. Monthly job page views were up over 90% year over year in September, the company said.
Weiner said that "China has continued to accelerate the absolute number of signups, and now has more than 13 million members, up more than 3 times since early 2014 when we launched our local language version. Though still early, we are also seeing strong sign-ups and engagement for Chitu, our first professional networking app designed specifically for the Chinese market."
LinkedIn expects revenue for the fourth quarter to range between $845 million and $850 million.
"As we think about 2016, we expect to accelerate our focus on how we integrate all of these assets to help enterprises hire, market and sell by using LinkedIn to connect to opportunity," Weiner said.
LinkedIn shares are up sharply this year after closing at $229.71 at the end of 2014. The stock hit its most recent high of $270.76 on February 26 early this year.
Read TheStreet'sreport today on LinkedIn.
In a move that reflects the continuing importance and dominance of mobile, Alphabet's(GOOGL) - Get Report Google business unit is merging its Chrome operating system for laptops into its Android software for mobile devices, Bloomberg Newsreported. The plan was first disclosed by TheWall Street Journal.
"The combined software will probably be previewed in 2016 and debut the following year, said a person familiar with the matter, who asked not to be identified because the plan isn't yet public," Bloomberg said.
The company's shares dropped by 1% Friday, closing at $737.39.
Beginning Monday, its separate businesses will begin trading on the New York Stock Exchange. One will be Hewlett Packard Enterprise (ticker symbol HPE) led by current HP CEO Meg Whitman and focused on servers, high-end software and services. The other, called HP (with the same ticker HPQ) will include printers and computers.
Read TheStreet'sreport today on HP.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.