) recently became the second largest social networking site in the
U.S. after Facebook in terms of visitors per month. The site has
become popular as job seekers and employers look to social media
for recruiting and to tap users professional networks. The company
also benefited from the buzz surrounding its IPO earlier this year
and from newer initiatives like
that have helped the company increase its user engagement levels.
Social media recruiting is a growing market but competition is
emerging as well. BranchOut and Monster's (
) Beknown are professional networking apps on Facebook that will be
a strong challenge to LinkedIn in the future.
While we expect the monthly page views per LinkedIn visitor will
increase from 37 in 2011 to over 42 by the end of our forecast
period, Trefis members predict an increase from 41 to 56 during the
same period. The member estimates imply about 10% to the Trefis
price estimate for LinkedIn's stock.
We currently have a
Trefis price estimate of $30 for LinkedIn's
, about 70% below the current market price of $101. Refer to our
Why LinkedIn's Fundamentals Don't Support the
on why we remain fundamentally bearish on the company.
New Features Heighten User Engagement Levels
In the last few months, LinkedIn has introduced features like
LinkedIn Today, a customized news offering based on the members'
choice of industry and relevance, and LinkedIn Skill which helps
members stay ahead of the competition by discovering hot skills
that other professionals are adding to their profiles. Another
application is LinkedIn Poll which helps companies conduct business
and market surveys by targeting users based on demographic and
professional orientation. Such new features have boosted LinkedIn's
monthly page views.
Growth in Recruitment via Social Media
One in every five people begin job searches using social
networks like Twitter, Facebook and LinkedIn, according to a recent
study by Kelly Services, a workforce solutions provider. This
indicates a shifting trend in online recruitment and growth of
social media in the overall professional networking space.
Burlingame, a recruitment solutions provider, conducted a survey of
800 employers in June and found that 90% of these companies will
start recruiting through social media this year.
This is good news for LinkedIn which recently beat Myspace to
become the second largest social networking site in the U.S. after
Facebook. According to a Comscore report, LinkedIn recorded 34
million visitors in June 2011 up 63% from a year ago while
MySpace's visitor count dropped 50% to 33.5 million. But Facebook
is still the prevailing leader with 161 million U.S. visitors, up
14% percent from a year ago, and new professional networking apps
like BranchOut and Beknown for Facebook will likely put pressure on
LinkedIn's visitor page views and user growth.
complete analysis for LinkedIn's stock is here