Facebook Inc. (NASDAQ:FB) has not been the darling of social media on The Street, thought it has recovered from its lows last September. The one social-media company that has gathered a lot of attention is Linkedin Inc. (NASDAQ:LNKD), and it is gaining more big fans in the wake of its earnings report this week, which blew away estimates- including revenue going up 81 percent from a year earlier and an EPS of 35 cents nearly doubling analysts’ estimates.
According to CNBC’s Jim Cramer, this could be the perfect opportunity for Facebook Inc. (NASDAQ:FB) to buy Linkedin Inc. (NASDAQ:LNKD). Say what?
“The thing that is amazing from the conference call is that the company is in Portuguese now, they’re taking over Brazil, they’re in German,” Cramer said. “Recruiters want them in their countries. They have an ad business that’s up by 60 percent? This is a company that, at $20 billion (market cap), Facebook should buy.”
“This is too valuable a property,” Cramer continued, making his case for Facebook Inc. (NASDAQ:FB) to consider a purchase. “Let’s think about it. This is a company that has figured out mobile, it has figured out global, it is indispensable in a whole bunch of countries.”
The pretty clear down side is that Linked Inc. (NASDAQ:LNKD) is getting big to where it would be a major purchase for Facebook Inc. (NASDAQ:FB), considering that Facebook has a $69 billion market cap at this point. Cramer also noted that the advertising business has been so strong that the company announced it will be raising prices on its platform. “Other than the New York Times and Linkedin, I don’t of anyone that can raise prices here (and get away with it),” he said.
What do you think about this concept? Could Linkedin Inc. (NASDAQ:LNKD) be a benefit for Facebook Inc. (NASDAQ:FB)? And should Linkedin even consider the idea itself? If it were to happen, what do you thik the effect would be on the social-networking lndscpe? We’d love yoru thoughts in the comments section below.
DISCLOSURE: I own no positions in any stock mentioned.
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