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): Forget Facebook Inc (FB), This Is The Social Media Stock To Own

Personal, business, class and even international – this trend crosses all boundaries.

While it is built upon the basic principles of human collaboration and friendship, this trend has been supercharged by the connective power of the Internet.

I am talking about networking.

Before the Internet, individuals had no choice but to meet face-to-face. This often restricted interaction to geographic locations and ingrained habit.

Sites like Facebook Inc (NASDAQ:FB) changed all that. And there is another social media opportunity that beats out even Facebook Inc (NASDAQ:FB). I’m going to tell you all about it. But first, I want to share with you my foray into social media.

I consider myself tech-savvy and an early adopter. However, my first real exposure to the new networking trend left me a little embarrassed.

I had just finished lunch with a friend from the University of Pennsylvania. When we parted, he asked if I was on Facebook Inc (NASDAQ:FB). “Facebook? What the heck is that?” I asked.

Remember, this was back when Facebook Inc (NASDAQ:FB) was exclusively for Ivy League universities. He explained that it was a great networking site for college students and others.

My friend pointed out that Facebook Inc (NASDAQ:FB) was more exclusive than Myspace or Friendster and required a “.edu” email to join.

“Not only that, but it’s going to soon expand to everyone and make the greatest stock investment ever,” he said. What he didn’t know was that there would be an even greater opportunity down the road. What is it? Well, it’s none other than LinkedIn Corp (NYSE:LNKD).

Flickr/Nan Palmero
Unlike Facebook, which disappointed investors with its IPO, LinkedIn is making its investors wealthy.

Unlike Facebook, which mostly concentrates on the social purpose for the end user, LinkedIn Corp (NYSE:LNKD) is focused on professional/business networking with the socializing aspect as a secondary function.

Founded in 2002 in co-founder Reid Hoffman’s living room, the company has rapidly expanded into a leading social media company. Boasting more than a quarter-billion members with 65% outside of the United States, LinkedIn Corp (NYSE:LNKD) is the largest professional network in the world. Job seekers, deal makers, business owners, and all strata of management/worker positions are represented. In fact, new users are flocking to the site at a rate of two per second, according to company data.

This growth has recently sparked heavy investor interest in the shares. The stock price has exploded by more than 400% since 2010, doubling in value during 2013 alone. Unlike Facebook Inc (NASDAQ:FB), which disappointed investors with its IPO, LinkedIn Corp (NYSE:LNKD) is making its investors wealthy. Here’s why.

Revenues at Facebook are primarily derived from advertising. This makes the company vulnerable to the success of its advertisers. No one is going to continue marketing in a manner that doesn’t produce returns. LinkedIn Corp (NYSE:LNKD) relies on a more diversified revenue model that consists of approximately 30% advertiser, 35% premium subscription, and 35% job listings. This revenue diversification provides LinkedIn Corp (NYSE:LNKD) more “staying power” than a primary advertising-funded model. Facebook boasts an incredible 1.11 billion monthly users, which dwarfs LinkedIn’s membership. Despite the size difference, the upwardly mobile professional user base of LinkedIn creates a more powerful marketing platform than Facebook Inc (NASDAQ:FB)’s younger audience.

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.