Apple Inc. (AAPL), LinkedIn Corp (LNKD) & Why This Social Network Has Immense Growth Potential

There are some heavy hitters here, mixed in with a few Chinese companies (that happens when you have hundreds of millions of internet users). But there’s one publicly traded company conspicuously missing here, and it offers both growth potential and users that bring more value than some of these other sites.

Great Strategy, Good Diversification…

I’m talking about LinkedIn Corp (NYSE:LNKD). With a growing user base of professionals, the site offers arguably more to its users than Facebook ever could. And pretty much everyone needs a job – which means they need a resume. That means they need LinkedIn Corp (NYSE:LNKD). When is the last time you looked for a job in a newspaper? It’s no wonder News Corp wants their own social network!

How does LinkedIn Corp (NYSE:LNKD) make money? They do have advertising on the site, but the money mainly comes from add-ons that users purchase to help them grow their network and for human resources to find great candidates. Premium memberships make up a good portion of their revenue, which totaled $325 million in the first quarter of 2013.

Things to Note

This isn’t to say that LinkedIn Corp (NYSE:LNKD) is perfect – some have criticized the company over privacy concerns. But this is an issue that all the companies discussed here have grappled with to some extent. In fact, it’s something that most companies in the digital age will have to deal with as they find new ways to use data to grow.

Speaking of growth, another problem for LinkedIn Corp (NYSE:LNKD) is its ability to continue to post amazing revenue growth numbers. In Q1, the company was able to grow year over year revenue by 72%. Those numbers aren’t sustainable, but the stock appears prepped for long and profitable growth over time. So ignore the noise and get some LinkedIn Corp (NYSE:LNKD) shares- their potential is only limited by the innovations they are able to make on an audience that has much more value than that of social networks like Facebook.

The article Why This Social Network Has Immense Growth Potential originally appeared on Fool.com and is written by Daniel Cawrey.

Daniel Cawrey has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and LinkedIn. The Motley Fool owns shares of Apple, Facebook, and LinkedIn. Daniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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