Facebook Inc (FB), LinkedIn Corp (LNKD): Linked and Loaded for Growth

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Facebook Inc (NASDAQ:FB) supports professional networks like BranchOut on its platform. BranchOut has been very successful to date and has been identified as LinkedIn’s top threat. However, I do not believe any network can rival the strength and popularity of LinkedIn, regardless of the challenger. With that said, I do think Facebook is a great value at current levels. Facebook Inc (NASDAQ:FB) and LinkedIn are differentiated enough to avoid a direct competition in today’s market.

Solutions competition

Monster

Monster Worldwide, Inc. (NYSE:MWW) provides employment solutions worldwide, much like LinkedIn’s Talent Solutions and Job Seeker services. It performed well for years, but has seen its stock fall 51% in the last 52 weeks due to increased competition.

Monster tried to combat LinkedIn’s growing presence by starting its own professional network called BeKnown. BeKnown is connected directly through Facebook like BranchOut, making it easier for users to begin their profiles and connect with existing friends.

The drawback is that LinkedIn dominates the market, and Facebook Inc (NASDAQ:FB) named BranchOut as its top professional networking application. As a result, BeKnown comes in third place at best. Personally, I do not want to try and catch the falling knife that is Monster Worldwide (NYSE:MWW).

The Foolish bottom line

Professional networking and job searching is a growing market, and LinkedIn is in a great position to continue its domination. A company does not obtain 202 million members throughout the world without creating a reputation for excellence.

As a college student, I have had academic advisors and career services advisors ask if I have a LinkedIn account, and been told to make sure that I update it regularly. This shows that colleges know its importance and will continue to promote the network. I think LinkedIn is a great value at current levels and should be bought on any weakness.

The article Linked and Loaded for Growth originally appeared on Fool.com is written by Joseph Solitro.

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