Not every social network gets the privilege of operating in China. Facebook, for instance, is banned from China. LinkedIn (NYSE:LNKD) is one of the few U.S. social networks with the privilege to operate online in the country. Perhaps China's favoritism toward LinkedIn has something to do with the fact the world's largest network of professionals could provide Western job opportunities for the Chinese. Whatever the reason, the privilege is undoubtedly an incredible opportunity for the company.
To aggressively pursue the opportunity, LinkedIn recently launched a Chinese language version of its website. With sequential member growth rates slowing in the company's fourth quarter, along with decelerating year-over-year growth in revenue and engagement rates, investors are looking for reasons to hold on to the stock at a pricey 17 times sales. Is this opportunity in China a big enough opportunity to convince investors to hold on to shares?
In the following video, Fool contributor Daniel Sparks takes a closer look at LinkedIn's opportunity in China.
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Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Facebook, Google, and LinkedIn. 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.