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LinkedIn looks to build on its impressive resume

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Posted May 14, 2013
In this Tuesday, May 7, 2013, photo, LinkedIn CEO Jeff Weiner, right, and company co-founder Reid Hoffman sit in the lobby of LinkedIn's Mountain View, Calif., headquarters. LinkedIn and Facebook celebrate the anniversaries of their IPOs just a few days apart this week. But the companies' experiences as publicly traded entities couldn't be more different. LinkedIn promotes its service as a stepping stone to a more enriching career. As it turns out, the professional networking company's IPO was a great place to start a rewarding investment portfolio, too. LinkedIn's stock has nearly quadrupled in value from its $45 IPO price two years ago. (AP Photo/Noah Berger)

In this Tuesday, May 7, 2013, photo, LinkedIn CEO Jeff Weiner, right, and company co-founder Reid Hoffman sit in the lobby of LinkedIn’s Mountain View, Calif., headquarters. LinkedIn and Facebook celebrate the anniversaries of their IPOs just a few days apart this week. But the companies’ experiences as publicly traded entities couldn’t be more different. LinkedIn promotes its service as a stepping stone to a more enriching career. As it turns out, the professional networking company’s IPO was a great place to start a rewarding investment portfolio, too. LinkedIn’s stock has nearly quadrupled in value from its $45 IPO price two years ago. (AP Photo/Noah Berger)

LinkedIn and Facebook will celebrate the anniversaries of their IPOs just a few days apart this week. But their experiences as publicly traded companies couldn’t be more different.

LinkedIn Corp. promotes its service as a stepping stone to a more enriching career. As it turns out, the professional networking company’s initial public offering was a great place to start a rewarding investment portfolio, too. LinkedIn’s stock has nearly quadrupled in value from its $45 IPO price on May 20 two years ago. On Monday, it closed at $175.03 per share. In contrast, Facebook’s stock is hovering around $27 per share, down 29 percent since debuted on May 18, 2012 at $38.

LinkedIn is emerging as the standout performer among its cohort of hotly anticipated IPOs from Internet companies that connect people with common interests. The company is growing faster and yielding far better shareholder returns than the rest of a class that includes online deals maker Groupon Inc., Web game maker Zynga Inc. and business review site Yelp Inc., as well social networking leader Facebook Inc.

With the exception of Yelp, the stocks of all those other companies are stuck well below their initial public offering prices. Although Groupon and Zynga have fared worse, Facebook has been the highest-profile disappointment.

But for all its success, LinkedIn still hasn’t immersed itself into people’s lives and reshaped technology as profoundly as Facebook has. Although LinkedIn has been attracting more frequent visits since its IPO, people still spend far more time on Facebook and share more of their lives there. Unlike Facebook, LinkedIn hasn’t become a hub for other online services, ranging from games to music.

Even among its fans on Wall Street, LinkedIn is seen as little more than an online hunting ground for opportunistic employers on the prowl for talented workers.

But that could change if LinkedIn CEO Jeff Weiner and Executive Chairman Reid Hoffman realize their ambitions. As the 10-year-old company heads into its second decade, its two top executives want to establish its website as an integral part of the global economy.

Read more at: Phys.org

 

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