Over the next couple of weeks, John and David will be reviewing their real-money 10-Bagger portfolio. In this video, they take a closer look at LinkedIn.
LinkedIn continues to stand out from the pack of social networking companies. John and David consider it an attractive long-term investment today. The company's Hiring Solutions segment continues to be the star performer, as sales notched another quarterly double. It's probably not long before Monster WorldWide is a thing of the past, but such is the nature of disruptive innovation. Interestingly, stocks of niche networks like LinkedIn and Zillow have been faring better than large networks like Zynga and Groupon.
LinkedIn's shares might not look attractive on a P/E basis, but we look at its cash flow growth instead. LinkedIn's network is becoming more valuable, and its shares are worth purchasing today.
Zynga is one social networking company that has performed very poorly since its IPO, and investors are beginning to wonder if it's game-over for the company.