Is This a Buying Opportunity for LinkedIn?

The last few months have been tough for LinkedIn (NYSE: LNKD  ) investors with the stock down nearly 20% from its all-time highs. Investors quickly soured on the social-media job networker after fourth-quarter guidance wasn't as high as consensus estimates.

Facebook (NASDAQ: FB  ) suffered the same fate as an initial positive earnings report was quickly overshadowed by negative comments on the conference call. These two events pointed to a repricing in the social-media landscape.

However, that narrative was quickly changed with Twitter's (NYSE: TWTR  ) successful IPO. Twitter quickly jumped from $26 per share to $45, and is priced at an astonishing price-to-sales ratio of 55.

As far as valuation is concerned, LinkedIn is priced at the lowest price-to-sales ratio and also has the lowest value per active user. Also, with three revenue-driving divisions, LinkedIn is more than just an advertising model.

Watch Jamal Carnette discuss if LinkedIn is a great long-term investment with Evan Niu, CFA.

All social-media investors should know this stock
This incredible tech stock is growing twice as fast as Google, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!


Read/Post Comments (0) | Recommend This Article (2)

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.

DocumentId: 2719212, ~/Articles/ArticleHandler.aspx, 4/18/2014 8:12:20 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