Shares of Facebook (FB) were having a nice day for a change on Wednesday. But another social network stock more accustomed to being a darling of Wall Street was also gaining ground. LinkedIn (LNKD) was up more than 6% after an analyst at Jefferies resumed coverage on the stock with a "buy" rating. Shares are now only about 7% below the all-time trading high that LinkedIn hit when it debuted as a public company in May 2011.
LinkedIn is a very very very very expensive stock, trading at more than 180 times 2012 earnings estimates. That makes Facebook like a dirt cheap bargain by way of comparison. But investors continue to be impressed by the fact that LinkedIn has a more diverse business model than Facebook and other social stocks. LinkedIn generates revenue from subscriptions as well as advertising. And the company's sales and profits have been rising at a faster rate than Facebook's.
Still, some traders on StockTwits are worried that LinkedIn is overvalued.
Xto: $LNKD Jefferies gave it a price target $142... can you imagine the P/E then?
momomiester: $LNKD amazing just some upgrade makes it run out of control
It is crazy how much momentum LinkedIn has. But when you consider just how much of a force the company has become in online recruiting .. . to the clear detriment of sites like Monster Worldwide (MWW) ... it is understandable why there is such excitement.
LinkedIn, like Google (GOOG) in search, may be boring compared to Facebook. But that's a
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