Please ensure Javascript is enabled for purposes of website accessibility

LinkedIn's Slowing Growth

By Mark Reeth and Brendan Mathews – Feb 7, 2014 at 4:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

LinkedIn's guidance for the coming year came in softer than analysts wanted, and shares are down on the news. Is it time to get in, or is this stock still too pricey?

Shares of LinkedIn (LNKD.DL) pulled back today after the company reported earnings. Despite delivering a solid quarter with a 47% increase in revenue, the market is reacting today to the future of the stock, and LinkedIn's guidance came in a little soft. The company stated that it only expects to grow 33% this year, and with the company's staggeringly lofty current multiples, 33% wasn't high enough for the market to justify the stock's current share price.

That being said, Motley Fool Brendan Mathews still loves LinkedIn. In this video on today's Stock of the Day, he discusses the company with host Mark Reeth, and compares it to some of the other social media stocks. In comparison to Twitter (TWTR), which trades at a higher multiple and brings in less revenue than LinkedIn, he sees LNKD as the better buy, although at this price, investors might do well to keep it as a smaller portion of a broader growth stock portfolio allocation.

Brendan Mathews has no position in any stocks mentioned. Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends LinkedIn and Twitter. The Motley Fool owns shares of LinkedIn. 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 Motley Fool has a disclosure policy.

Stocks Mentioned

LinkedIn Corporation Stock Quote
LinkedIn Corporation
LNKD.DL
Twitter Stock Quote
Twitter
TWTR

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.