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LinkedIn: Social Media Stock For Investors Who Hate Social Media Stocks

Image representing LinkedIn as depicted in Cru...

By : David Penn,

Image via CrunchBase

With shares of Facebook (NASDAQ: FB) continuing to be sold aggressively, it will be worth watching to see how well the “Facebook for Grownups” known asLinkedIn (NYSE: LNKD) does when it reports quarterly earnings later this week.

LinkedIn clearly has become the sole beloved of the social media stocks. With the Zynga (NASDAQ: ZNGA) implosion, the slow-motion meltdown inGroupon (NASDAQ: GRPN), and Facebook increasingly suffering from both overvaluation and volume (i.e., large shareholders with big losses looking to get out as well as the earlier-than-typical expiration of share lockups that likely will release more FB shares into an already-saturated market), “boring is beautiful” LinkedIn is being heralded as “the only social stock that matters” by pundits in the financial media (above plaudits courtesy of The Wall StreetJournal and CNN Money, respectively.)

Up more than 100% in its rally from latest November through the beginning of May and in correction mode ever since, LNKD shares have been on sale twice this month. In the first instance, a sell-off that took the stock lower for three out of four sessions in the first half of July was met by buying and a snapback rally gain of more than 6% in three days and more than 9% in six days.

More recently a five-day retreat sent LinkedIn shares tumbling back to oversold levels, as well as to new, two-week lows. As of midday on Tuesday, the market for LNKD is higher vis-a-vis those pullback lows, though a fraction of Monday’s and Friday’s gains have been given back.  Read More

 

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A Revolution in Social Networking

Posted on July 31, 2012, in #social media and tagged , , , , . Bookmark the permalink. Leave a comment.

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