) jumped 2% on Monday's trade after the company reportedly bought
Newsle, a San Francisco-based technology start-up founded in 2011.
The financial terms of the deal were not available. Reports suggest
that Newsle will continue to function as a separate entity but its
features will be merged with LinkedIn.
Newsle offers its more than 2 million users relevant news
feeds/articles on people they follow on social and professional
networking sites in real time. With the acquisition, LinkedIn will
gain access to this software which searches relevant information on
the Internet faster, in turn, increasing user engagement.
Separately, LinkedIn has taken several initiatives to increase
its user engagement like the launch of a low-base subscription
service called Premium Spotlight. Apart from this, LinkedIn has
redesigned its member profile pages with larger profile photos and
header images. Moreover, the professional networking company has
launched a job search app for
) iPhone to cater to the growing number of its members who search
for jobs via mobile devices.
These initiatives will boost LinkedIn's chances of increasing
its paid-membership count. The company's expansionary initiatives
in China also remain on track, which give it a head start on
Nonetheless, continued investments to improve product and
service offerings might affect LinkedIn's profitability. Though
impacting the company's operational performance in the short run,
these investments drive member growth and user engagement over the
long term. We remain encouraged by the 45-50% top-line growth
recorded in the past few quarters.
LinkedIn, thus, remains a pioneer and a leading professional
networking company with a wide industry reach that enables it to
explore and tap into every opportunity to connect the global
Currently, LinkedIn has a Zacks Rank #2 (Buy).
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