The concept of professional / business networking has come a
long way. Companies such as
), Xing and Viadeo have helped in a big way to add new features
and revolutionize this field.
An increasing number of companies, irrespective of their
sizes, are taking the help of popular networking and information
sharing sites, such as
to market their products and services.With each passing day,
these mediums of business communication are gaining an edge over
their traditional counterparts, such as television and print
Online professional networks are gaining popularity among both
young and veteran professionals. They are helping these
professionals address professional issues online.
Although business networking has taken a little more time to
gain a foothold, compared to social networking, which has grown
in leaps and bounds, it is noticeably scaling up as we speak and
is in the process of transforming the fields of recruitment,
self-employment and product promotion. Sensing the opportunities
available in the field of professional / business networking,
social networking sites, such as Facebook, are also coming up
with services to cater to business customers and
LinkedIn has come a long way since its IPO in 2011. The cash
cow for LinkedIn has been its talent solutions segment, which
connected recruiters to candidates. On an average, this segment
generated over 50.0% of the company's total revenues over the
last couple of years.
Although the talent solutions unit is generating good business
for the company, it is havingtrouble generating ad revenues from
its growing mobile user base. The company's premium subscriber
base in the advertisement segment generates only about 20.0% of
the revenues as most users do not get converted to paid
Moreover, business networks are facing some other issues as
well. One of the main issues is the absence of video interaction.
As a result of this, members are unable to convey a sense of
their personality to the prospective employer or business
counterpart. Some industry veterans feel that this is an
important part of networking and business interaction. It is for
this reason that sites like LinkedIn are not preferred by
recruiters for conducting a preliminary interview.
This is one of the main reasons behind people opting for sites
Growth prospects of business networking sites are dependent on
their ability to introduce new technologies so that employers,
recruiters, marketers and public relations departments of
companieshave greater flexibility and better use for the service.
This will also attract new paid users and build customer
Both LinkedIn and Facebook carry a Zacks Rank#2 (Buy).
Investors can also consider investing in other stocks such as
Akamai Technologies Inc.
) both of which carry a Zacks Rank#2 (Buy).
AKAMAI TECH (AKAM): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis
LINKEDIN CORP-A (LNKD): Free Stock Analysis
YAHOO! INC (YHOO): Free Stock Analysis Report
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