This Company Could Continue to Outperform..LinkedIn Corp (LNKD), Facebook Inc (FB)

But LinkedIn operates with nearly all the capabilities of Monster Worldwide, which not only facilitates job searching but also allows professional networking. It’s due to this reason that over the last two years, shares of LinkedIn have risen by 87% while shares of Monster Worldwide have depreciated by 66%.

Wrapping it up

On taking a look at the metrics, Monster Worldwide looks like a dream stock. It appears to be deeply undervalued, with little debt and a massive 54% gross margin. But its shares have plunged by nearly 31% over the last year, and the management is not able to cease the decline.

Despite the lofty valuations of LinkedIn, analysts expect its annual EPS to grow at a staggering 60% for the next five years. This means, an investment made this year could multiply by eight times in less than five years. But obviously, the risks presented by volatility and flash-crashes of dot-com companies will be there. That said, I think LinkedIn is a great company and investors should ride the trend, until the end.

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