3 Reasons to Buy LinkedIn

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

LinkedIn shares pulled back a bit recently, but that's hasn't stopped lots of people from saying it's overvalued. John and David disagree with that outlook. In fact, they have three reasons LinkedIn is worth buying today.

LinkedIn has a huge, growing network of professionals. Sure, there's competition from salesforce.com and Oracle's Taleo. But they are significantly smaller networks. LinkedIn is the place to be right now. LinkedIn's purpose is to change the way people work, and it has started with the hiring process. LinkedIn brings recruiters and candidates together, unlike the job listing services from Monster Worldwide or Gannett's CareerBuilder.

LinkedIn's core business prospects are very bright. The growth options the company has are even more attractive. LinkedIn also has the data to go in a number of different directions. Recently, it has been helping employers manage their brands and rolled out Sales Navigator, a tool that helps salespeople manage and navigate their networks.

Looking at LinkedIn's P/E ratio doesn't tell the whole story. The company spends 25% of its revenue on R&D to fuel its future growth. Evaluating LinkedIn on its quality and its options makes its shares very attractive today.

We all would like to build long-term wealth and retire well. In our free report "3 Stocks That Will Help You Retire Rich," we reveal some outstanding stocks that might help you with your long-term investing goals. Click here to keep reading.

David Meier and John Reeves have no positions in the stocks mentioned above. The Motley Fool owns shares of LinkedIn and Oracle and has options on salesforce.com. Motley Fool newsletter services recommend LinkedIn and salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2056283, ~/Articles/ArticleHandler.aspx, 10/23/2014 2:19:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement