Facebook Inc (FB), LinkedIn Corp (LNKD): Facebook At Work Is A Noble Intention, But Might Come In Too Costly

LinkedIn Corp (NYSE:LNKD)’s price is getting up shyly with only approximately 0.4% so far during the day, to a price of about $224. Facebook Inc (NASDAQ:FB) seems to be in the same boat with an upswing of almost 0.35%, but with a different price close to $74.5. Their fates have somehow joined together after the announcement of Facebook at Work, which would be the business platform from Mark Zuckerberg. CNBC inquired analysts about their opinion on this potential move.

“I think it’s going to be hard from branding perspective for Facebook Inc (NASDAQ:FB) to really break away and simply be more than something just for socializing as opposed for business relationships,” suggested Michael Gayed.

Undoubtedly, the two websites are perceived as compliments rather than substitutes since we tend to divide out social environment from the business one. Nevertheless, as there a strengthening tendency towards more social involvement with the people one works with, the gap between Facebook Inc (NASDAQ:FB) and LinkedIn Corp (NYSE:LNKD) should narrow. A more prominent obstacle is the fact that revenue flows into these two companies from different clients and their operations follow unique development styles.

“Facebook Inc (NASDAQ:FB) and LinkedIn Corp (NYSE:LNKD) are both social media stocks, but LinkedIn Corp (NYSE:LNKD) gets almost two thirds of its revenue from corporate customers, HR [Human Resources] people, head of sales, head of R&D [Research and Development] and so forth that are using LinkedIn Corp (NYSE:LNKD) software to go find people looking across of the 332 million or so,” suggested Martin Pyykkonen.

Martin went on saying that the idea has serious arguments to be supported with, but it makes little sense to cash out too much for the same purpose. That is, it might come too expensive for Facebook Inc (NASDAQ:FB) to build the core infrastructure of LinkedIn Corp (NYSE:LNKD), which already dominates the business domain of social networking. So, unless there’s a better way, currently unknown for us, this news is difficult to interpret positively.

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