Few growth stocks in recent years have generated the kind of home-run returns that we've seen with professional social networking site LinkedIn (LNKD.DL). In fact, in three of the last six years, LinkedIn has grown its revenue faster than 100%. LinkedIn's stock hasn't performed badly either, gaining well more than 100% since its 2011 IPO.
LinkedIn's stock has come under pressure of late, though, after the company posted fourth-quarter results that came in lower than analysts expected. As is so often the case with growth stocks, the possibility of slowing, but still robust, growth at LinkedIn has investors worried.
However, a recent move on LinkedIn's part should help assuage investors' doubt about its truly massive growth potential.
Head East young man
LinkedIn made waves recently when it announced it would officially launch a Chinese-language based professional networking site in China in the coming months.
As the country with the world's largest Internet community and an estimated 140 million online professionals, LinkedIn certainly stands to gain from this untapped territory. However, doing business in China also comes with several undeniable risks factors as well. In the video below, tech and telecom analyst Andrew Tonner discusses LinkedIn's recent move and what it should mean for investors.