Why LinkedIn Is Poised to Plunge


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 has received the dreaded one-star ranking.

With that in mind, let's take a closer look at LinkedIn and see what CAPS investors are saying about the stock right now.

LinkedIn facts

Headquarters (founded)

Mountain View, Calif. (2002)

Market Cap

$11.6 billion


Internet software and services

Trailing-12-Month Revenue

$836.4 million


Co-founder/Chairman Reid Hoffman

CEO Jeffrey Weiner

Trailing-12-Month Return on Equity



$676.7 million / $0



Jigsaw Data

Monster Worldwide

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 71% of the 1,215 members who have rated LinkedIn believe the stock will underperform the S&P 500 going forward.

A couple of months ago, one of those Fools, reeshau, succinctly summed up the LinkedIn bear case for our community:

It has been said before, but LinkedIn has a stratospheric valuation without a clear sustainable moat. A number of competitors can directly compete with them in the future: Monster, Facebook, Google . I am a LinkedIn user, but I do not see how they will up their monetization of the site without attracting competition.

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The article Why LinkedIn Is Poised to Plunge originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook, Google, and LinkedIn and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Facebook, Google, and 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 Motley Fool has a disclosure policy.

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