The Future of LinkedIn
Professional social network LinkedIn reported earnings last night, which saw shares falling this morning after the news, despite a solid quarter from the company. All three segments of the business continue to put up healthy growth, with its core talent solutions business up by 53%. The company also continues to add members at a solid rate, now at 277 million, compared to 259 million last quarter.
In this video, Motley Fool tech and telecom bureau chief Evan Niu discusses LinkedIn's big issue -- its guidance for the year -- which fell short of consensus. The company expects upwards of $2.05 billion in revenue for 2014, versus analyst consensus of $2.2 billion. Evan discusses why he sees 2014 as another year of the company reinvesting in the business, specifically in data centers, with the goal of owning its infrastructure. This is something he sees as cost-intensive now, but well worth it in the long run. Evan also looks at the company's potential future in China, an opportunity that the other two big social networks don't have.
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The article The Future of LinkedIn originally appeared on Fool.com.Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA owns shares of LinkedIn. The Motley Fool recommends LinkedIn. 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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