Today, LinkedIn stocks rose up to 10% after the company reported its second quarter earnings. Since its initial public offering in 2011, LinkedIn has more than quadrupled in revenue.
LinkedIn is still globally considered as the largest professional networking service on the Internet. It forecasted a revenue of US$367 million to US$373 million for the third quarter. However, their figures were falling behind the average estimate of analysts of US$383.3 million.
Investors were said to be focused on the company's membership which already reached 238 million. LinkedIn boosted the prices for recruiters. It also rolled out some features so that subscribers would keep on coming back to its site. Furthermore, the company recently launched a product that would allow its advertisers to endorse their brands on the homepage on every member.
LinkedIn stocks climbed 9.5% to US$233.21 at 9am today in New York following an increase of 86% this 2013 through yesterday. Even before LinkedIn's gain today, the company was valued at 144 times projected earnings for this year. The figure was a premium to the price to earnings ratio of Facebook of 53 and nearly seven times the multiple of Google Inc.
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