LinkedIn's Slowing Growth

Updated
LinkedIn's Slowing Growth

Shares of LinkedIn 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 , 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.

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The article LinkedIn's Slowing Growth originally appeared on Fool.com.

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. 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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