LinkedIn Corp (LNKD), Google Inc (GOOG): Where Does Facebook Inc (FB) Go from Here?

This does not account for mobile sales, as the platform is more proprietary and focused rather than bespoke according to users likes and tastes. This does, however, show relative valuations and metrics comparable to Facebook’s if one were inclined to scale the companies to the same size.

LinkedIn Corp (NYSE:LNKD)’s share price of $203.98 per share with a price-to-earnings ratio of 780 is not much more expensive than Facebook (as Facebook’s shares trade over 720 times its trailing earnings.) I can’t see LinkedIn Corp (NYSE:LNKD)’s shares as having much more momentum behind them, however, at least for the next quarter. They are expensive, and should probably be shelved until a better valuation is reached to warrant entry into the company’s stock.

What’s next for Facebook’s shares?

This excellent quarter is exactly what Facebook needed to finally crawl out of the rut it has been in since its first day of trading. As long as the monetization of its mobile user base can accumulate on its top line, Facebook’s company and shares will warrant a stronger valuation.

I believe that the management of Facebook is savvy enough to figure out how to compete against its largest mobile-market competitor, Google, and be able to drive more value to shareholders. Considering this, I certainly agree with the analysts recommendations on the Street, and would buy Facebook shares at this point.

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

The article Where Does Facebook Go from Here? originally appeared on Fool.com is written by Michael Mandala.

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