LinkedIn Corp (LNKD), Google Inc (GOOG), Netflix, Inc. (NFLX): Future Internet Trends That Investors Cannot Ignore

Historically, the company has been able to increase the amount of revenue at a faster rate than the cost of acquiring content and management of its business. Because of this, the company still seems to be scaling its business effectively.

The stock is 341% above of its 52-week low. The stock seems to be a little pricey at a 557.8 earnings multiple, but this is driven by the fact that the company has a lot of pent-up growth potential. The company’s $8 a month streaming subscription package has a lot of potential in both emerging and developed markets. The company could grow its subscriber base into something significantly larger as Microsoft Corporation (NASDAQ:MSFT) estimates that the number of internet users will grow to 4 billion by 2020.

Analysts remain heavily optimistic about Netflix, Inc. (NASDAQ:NFLX), and expect the company to grow earnings by 375.9% in the 2013 fiscal year, and to grow by 121.7% in fiscal year 2014.

Conclusion

The amount of internet usage has risen considerably over the previous year. Because of this, investors need to know where they should be positioned. I believe that LinkedIn Corp (NYSE:LNKD) may have the most upside growth, as finding employment and talent acquisition will become more important. Google Inc (NASDAQ:GOOG)’s advertising and mobile business are also like to grow at unexpectedly high rates for a prolonged period of time. Netflix, Inc. (NASDAQ:NFLX) comes in third because the stock trades 341% above its 52-week low. The company should be able to sustain higher rates of growth, but investors should be a little cautious of the extremely large price-to-earnings multiple. Expectations are high, and if Netflix, Inc. (NASDAQ:NFLX) falls short of expectations the stock could potentially crater.

The article Future Internet Trends That Investors Cannot Ignore originally appeared on Fool.com and is written by Alexander Cho.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Google, LinkedIn, and Netflix. The Motley Fool owns shares of Google, LinkedIn, and Netflix. Alexander 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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