LinkedIn Corp (LNKD) Continues to Impress

Facebook Inc (NASDAQ:FB)’s ability to track personal details leads to highly targeted ads, which is a big plus. Facebook plans on investing more in mobile, which will lead to a temporary increase in costs, but as long as the advertising market stays healthy, Facebook should be able to reap the rewards.

On the other hand, Facebook Inc (NASDAQ:FB) needs to find more ways to monetize its user base, without ticking off its users. That’s the key. If Facebook is reliant on the advertising market and that market falters due to a downturn in the economy, Facebook shares could drop significantly.

Like LinkedIn Corp (NYSE:LNKD), Facebook Inc (NASDAQ:FB) has seen superb top-line growth. Annual earnings have been inconsistent, but upper management believes this will change over the long haul.

Conclusion

Facebook Inc (NASDAQ:FB) is by far the largest of the three and it seems to be on track right now. Monster Worldwide, Inc. (NYSE:MWW) looks to be suffering from a slow death and you should strongly consider avoiding the stock. At this point, there appears to be little hope for a turnaround.

LinkedIn Corp (NYSE:LNKD) might not be as big as Facebook Inc (NASDAQ:FB), but it has been better at monetizing its user base. Management is top-notch, and the company is strongly positioned for the future. The one major negative is valuation. Still, this business might be worth a closer look.

The article LinkedIn Continues to Impress originally appeared on Fool.com and is written by Dan Moskowitz.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn. Dan 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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