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.

Facebook Inc. (FB) Dives, LinkedIn Corporation (LNKD) Soars

The world of social media might be dominant in favor of Facebook Inc. (NASDAQ:FB), but in the world of investing in social media, the undisputed king at this point is LinkedIn Corporation (NYSE:LNKD), which continues to impress with its business model, its financials  and its continuing diversity and monetization plans.

Facebook Inc. (FB)

LinkedIn Corporation (NYSE:LNKD) continued its ascent in the realm of investing thanks to a strong quarterly earnings report Thursday, which has sent its stock on another upward swing, up more than 12 percent on the day to just shy of $105 a share. This has been quite a remakable expansion for LinkedIn, which has a model and a business that investors are clamping onto, mainly because they’re seeing consistent return on their money.

“LinkedIn is benefiting from secular growth, a very nicely diversified business model, and market share gains,” Citi analyst Mark Mahaney wrote today in a note to investors.

With Facebook Inc (NASDAQ:FB), on the other had, the stock has dropped nearly 50 percent from its IPO price just three months ago. There have been a number of factors and bad news that have come with Facebook since the company went public, and now many of the numbers Facebook reports are being questioned, criticized and scrutinized. Some of the recent bad karma for Facebook has been reports of nearly 9 percent of Facebook accounts are considered “fake,” yet the company includes those numbers in its total account number. (which means the actual number may be closer to 500 million than the 550 million reported). Also, there have been questions regarding Facebook’s definition of “active user,” which Facebook is accused of a more liberal definition than just those people who use – instead adding those who use account credentials to log in to another external web site.

Plus, Facebook Inc (NASDAQ:FB) has admitted to having a difficult time monetizing its ubiquitousness in terms of advertising, and has especially found trouble with Facebook Mobile, which CEO Mark Zuckerberg predicted the mobile market will be bigger than the computer market within five years. With Facebook having limited success on computers now, and the need for better mobil reach in the near future, Facebook will need to show some progress and intent to make money for investors fairly soon, or many investors will see Facebook as a glorified non-profit.

LinkedIn Corporation (NYSE:LNKD) has been making stock moves similar to the early days of Google Inc. (NASDAQ:GOOG) when it made its splash in the technology arena with the introduction of its search engine and Internet advertising. LinkedIn has a strong monetization mechanism with not only advertising, but also with fees for memberships and other services.

Facebook will need to work hard to find returns on investment for investors like billionaire Chase Coleman, who is invested in Facebook Inc (NASDAQ:FB) stock (see his stock picks from the first quarter, before Facebook’s IPO; his new quarterly list will be released in the middle of August). Meanwhile, LinkedIn is making some money for a billionaire like Stuart Peterson, who invested about 4 percent of his portfolio in LinkedIn during the first quarter of this year (see his holdings here).

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.