Netflix, Inc. (NFLX), Amazon.com, Inc. (AMZN), LinkedIn Corp (LNKD): Three Momentum Stocks Poised for Big Change

LinkedIn’s diverse revenue streams and unique business

This brings me to LinkedIn Corp (NYSE:LNKD). After coming out on its IPO, it subsequently dropped 50% in value. Since then it has recovered and then some. Tremendous user growth and diverse revenue streams are why people are paying such a high price for this stock.

During LinkedIn’s first quarter, on a non-GAAP basis, it generated $52 million, which is 180% more than the $17.3 million it made the prior-year quarter. Revenues were up 72% year-over-year to $325 million.

LinkedIn Corp (NYSE:LNKD)’s Talent Solutions division helps clients find employees. Its Marketing Solutions deals with advertisement revenue, and Premium Subscriptions division creates resources for subscribers to find jobs. The different ways LinkedIn makes money make it different from any other social media company.

LinkedIn Corp (NYSE:LNKD) also scales extremely well. The bigger the talent pool, the more companies will come to hire. This in turn draws in an even bigger pool.

It also has a strong hold overseas as professionals outside the United States now make up more than 64% of LinkedIn Corp (NYSE:LNKD). In an ever-shrinking world, LinkedIn’s ability to provide connections all over the world will make it extremely valuable to anybody in the workforce.

My Foolish take

Unlike the other two companies I looked at, LinkedIn Corp (NYSE:LNKD)’s success will be strictly dependent on its ability to grow. The demand for its services are recession-proof and the more user engagement it generates, the more valuable it will be to clients. It serves a niche invaluable to customers as getting a job is one of the most important things in a person’s life, and finding talented workers is one of the most important ingredients to a company’s success. I feel LinkedIn has the best prospects going into the next few years.

The article Three Momentum Stocks Poised for Big Change originally appeared on Fool.com.

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