LinkedIn Corp (LNKD): Three Reasons To Buy In

And while LinkedIn wisely spent 60% of its revenue on sales, marketing and product development, Monster Worldwide, Inc. (NYSE:MWW) doesn’t even break out its spending in a way to compare. The very least one can tell is that the company spent 21% on marketing and promotion.

That’s an important difference, as LinkedIn focuses on an army of on-the-ground recruiters to get businesses to sign up to be a part of the network.

If we look at free cash flow, instead, we see growth that the company has grown at a ridiculous rate.

Source: SEC filings. Numbers in millions of dollars.

3. A global field ripe for disruption
As it stands, the company makes money through three main pipelines.

Talent solutions: Caters to businesses looking to recruit

Marketing solutions: Offers online advertising

Premium services: Focused on optimizing the experience for paying users

Though all three are important, it is the talent solutions division that I think holds the real potential. Right now, 62% of LinkedIn’s revenue comes from the United States. Even though most users are from abroad, most companies using talent solutions are stateside.

It will no doubt be expensive for the LinkedIn to set up on-the-ground teams in different countries, but there’s no doubt that LinkedIn is already popular with individuals in foreign countries. Convincing the enormous number of businesses abroad of the value proposition LinkedIn offers would be a big deal for the company’s bottom line.

The article 3 Reasons to Buy LinkedIn Stock Today originally appeared on Fool.com.

Fool contributor Brian Stoffel owns shares of LinkedIn. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn.

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