Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online professional network operator LinkedIn
With that in mind, let's take a closer look at LinkedIn's business and see what CAPS investors are saying about the stock right now.
|
LinkedIn facts |
|
|---|---|
| Headquarters (Founded) | Mountain View, Calif. (2002) |
| Market Cap | $7.3 billion |
| Industry | Internet information providers |
| Trailing-12-Month Revenue | $436.1 million |
| Management |
Co-founder/Chairman Reid Hoffman CEO Jeffrey Weiner |
| Trailing-12-Month Return on Equity | 4.0% |
| Cash/Debt | $387.7 million / $0 |
| Competitors |
Jigsaw Data Corp. Monster Worldwide |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 87% of the 893 members who have rated LinkedIn believe the stock will underperform the S&P 500 going forward.
Just last month, one of those Fools, Seansonfire, touched on the stock's seemingly unsustainable valuation:
LinkedIn will remain a top niche social networking website for professionals going forward. I don't care what Facebook tries to do to compete in the professional space. With that being said, being the top social networking website for professionals is not very profitable nor has LinkedIn done a good job of generating revenues. ... Way overvalued at this point.
There is potential for growth in LinkedIn, but it will take time and I doubt they start generating significant free cash flow anytime soon.
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