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
With that in mind, let's take a closer look at LinkedIn's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Mountain View, Calif. (2002)|
|Market Cap||$7.3 billion|
|Industry||Internet information providers|
|Trailing-12-Month Revenue||$436.1 million|
Co-founder/Chairman Reid Hoffman
CEO Jeffrey Weiner
|Trailing-12-Month Return on Equity||4.0%|
|Cash/Debt||$387.7 million / $0|
Jigsaw Data Corp.
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 87% of the 893 members who have rated LinkedIn believe the stock will underperform the S&P 500 going forward.
LinkedIn will remain a top niche social networking website for professionals going forward. I don't care what Facebook tries to do to compete in the professional space. With that being said, being the top social networking website for professionals is not very profitable nor has LinkedIn done a good job of generating revenues. ... Way overvalued at this point.
There is potential for growth in LinkedIn, but it will take time and I doubt they start generating significant free cash flow anytime soon.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.