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LinkedIn Corp. (NYSE: LNKD)

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Will LinkedIn Corp. (NYSE: LNKD) Earnings Follow Groupon's Dismal Lead?

By , Associate Editor, Money Morning -

LinkedIn Corp. (NYSE: LNKD) reported earnings today (Thursday) that beat expectations, further distancing it from struggling Groupon Inc. (Nasdaq: GRPN) and raising the bar for competitors.

LinkedIn's revenue for the fourth quarter was $167.7 million, an 105% increase compared to $81.7 million for the same period the year before. That beat The Street estimate of $159.7 million.

Net income rose 30% to 6 cents per share or $6.9 million, up from $5.3 million a year ago, according to FactSet. Non-GAAP net income for the quarter was $13.3million or 12 cents per share.

LinkedIn had warned the fourth quarter could result in another loss due to costs of hiring more workers for new projects to grow its subscriber base. LinkedIn, however, usually gives conservative guidance and beats estimates, which it has done for the past few quarters.

LinkedIn Corp. (NYSE: LNKD) Gives Strong Guidance

LinkedIn scored half of total fourth-quarter revenue from hiring solutions, the services used to match up jobs and job seekers. About 30% of the total quarterly revenue came from its marketing business and ad sales, and the remaining 20% from premium subscriptions.

Those business segments' growth rates show their demand in the career networking universe: hiring solutions sales climbed 136%, marketing sales were up 77%, and premium subscriptions grew 87%.

LinkedIn also made strides in its international business, branching into growing markets that will have a bigger need for professional networking. It finalized three offices, one each in Japan, Brazil, and India.

For the current quarter, the company forecasts revenue in a range of $170 million to $175 million, ahead of the average $171 million estimate.



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Buy, Sell or Hold: Now's Not the Time to Connect to LinkedIn Corp. (NYSE: LNKD)

By , Global Macro Trends Specialist, Money Morning -

Linkedin Corp. (NYSE: LNKD) made a lot of headlines this summer with one of the most successful initial public offerings (IPOs) since the dotcom bubble.

However, that IPO has left the company slightly overvalued. At current levels LinkedIn has a market cap of almost $10 billion and is trading at more than 30-times 2010 sales. And while the company has guided third-quarter and full-year revenue higher, it also has warned that it won't be profitable in 2011.

That's not to say LinkedIn doesn't have some real advantages - it does. The company has performed very well in some areas and operates in an attractive niche. But it's also facing some serious headwinds that include market saturation, pressure from short-sellers, and low revenue expectations.

For those reasons, LinkedIn is a "Hold" - at least until its share price more closely aligns with its fundamentals.

A Closer Look at LinkedIn

Let's look at the positives first.

LinkedIn has $106 million in cash and no debt. The company's second-quarter revenue more than doubled from last year to $121 million. Revenue from marketing solutions surged 111% to $38.6 million, and sales of premium subscriptions increased by 60% to $23.9 million.

These results are no fluke. As a social network focused on professionals, LinkedIn is a valuable resource for unemployed workers - and there are a lot of people looking for jobs right now.



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Hot Stocks: Why LinkedIn Is More than Just a "Bubble"

By , Managing Editor, Money Morning -

LinkedIn Corp. (NYSE: LNKD) has had quite a ride since its initial public offering last week.

The stock surged 109% in its first day of trading to a peak of $122.70 a share, but has since tumbled back to close yesterday (Thursday) at $78.63.

Optimism about the potential for new-wave social media companies and a genuine thirst among investors desperate for a serious growth play drove LinkedIn's meteoric rise. But profit-taking and fears that the stock had entered "bubble" territory led to a quick drop.

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