Why LinkedIn Is Poised to Plunge

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 (NYSE: LNKD  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at LinkedIn and see what CAPS investors are saying about the stock right now.

LinkedIn facts

Headquarters (founded)

Mountain View, Calif. (2002)

Market Cap

$11.6 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$836.4 million

Management

Co-founder/Chairman Reid Hoffman

CEO Jeffrey Weiner

Trailing-12-Month Return on Equity

2.8%

Cash/Debt

$676.7 million / $0

Competitors

Facebook (NASDAQ: FB  )

Jigsaw Data

Monster Worldwide

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 71% of the 1,215 members who have rated LinkedIn believe the stock will underperform the S&P 500 going forward.

A couple of months ago, one of those Fools, reeshau, succinctly summed up the LinkedIn bear case for our community:

It has been said before, but LinkedIn has a stratospheric valuation without a clear sustainable moat. A number of competitors can directly compete with them in the future: Monster, Facebook, Google (NASDAQ: GOOGL  ) . I am a LinkedIn user, but I do not see how they will up their monetization of the site without attracting competition.

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