Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

LinkedIn Corp (LNKD) & Facebook Inc (FB): A Tale of 2 Networks

Page 1 of 2

You have two companies. Both are social networking sites with immense popularity. Both generate revenue by allowing advertisements to be displayed on their websites (one much more so than the other).  And yet in terms of clientele and providing a service with substantial monetary value, these two could not be more different.

Their missions

The mission of the first, verbatim from its latest annual report, is to “Connect the world’s professionals to make them more productive and successful.”

The mission of the second, also verbatim, is to “Make the world more open and connected.”

Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD)

You probably easily guessed that the two networks I am referring to are  LinkedIn Corp (NYSE:LNKD) and Facebook Inc (NASDAQ:FB).  The missions of each, describing the service the companies aim to provide, can give you a glimpse as to whether they have any real monetary value.

LinkedIn provides something worth paying for

LinkedIn gives professionals a portal to connect with others in their field. The site allows its users to establish connections that will will expedite their success and further their careers.

In my opinion, that service is a valuable one, and LinkedIn Corp (NYSE:LNKD) provides it to individuals free of charge. Which was a wise move on its part, as LinkedIn could never have obtained the popularity it has by charging each individual member. The vast majority of individuals balk when faced with having to pay for a social networking site.

In providing a top-notch social network for professionals free of charge LinkedIn Corp (NYSE:LNKD) has done something amazing. It has created a large pool of individuals who have both high degrees of education and specialized knowledge.  Such a pool is immensely valuable, the kind of value a prospective employer would pay money for.

Additionally, many LinkedIn members are not new to the professional world, but rather people who have already achieved immense success within it. People like that tend to have deep pockets, making them an audience advertisers will pay big money to gain access to.

When it comes to websites that connect employees and employers, only one can achieve massive success. Proving that claim only requires examining recent results from Monster Worldwide, Inc. (NYSE:MWW). In 2012 it posted negative net income of $258.72 million, and has cash reserves that are quickly dwindling.

And that’s significant because Monster operates in more than 40 different countries–so it has already picked a good portion of the low hanging fruit.  Despite the market’s rebound, the stock is trading near its 52 week low.  All told Monster Worldwide, Inc. (NYSE:MWW) is now trading for less than $600 million, while LinkedIn Corp (NYSE:LNKD) has a market cap near $20 billion.  The term top dog means there can be only one.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!