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.

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