LinkedIn Corp (NYSE:LNKD)’s stock price soared after the company beat the analyst estimates and posted a revenue of $568 million against the estimated $557 million which translated into an EPS of $0.52 against the estimated $0.47. Moreover, there are significant growth prospects for the social media website in the future.
On Fox Business, Robert Peck, who is the managing director of SunTrust, shed some light on why his fund has a price target of $240 for LinkedIn Corp (NYSE:LNKD) in 2015. The stock was trading at $228 at the closing bell of the last trading day. He also explained how the new feature of the online job site, Sales Navigator has had a pretty good start.
“[…] It seems that they are doing pretty well because that falls under the premium subscription book and that beat by about $5 million or so. It looks it is doing pretty well. We have done some survey work and it has good up take by sales people, so it looks like it is off to a good start […],” said Peck.
Another interesting feature of LinkedIn Corp (NYSE:LNKD) is its relationship with the unemployment figures, which are currently at a record low. The lower the figure is the better it is for the US economy but not so much for the social media website.
However, Peck explained that if you take into account the expansion plans of LinkedIn Corp (NYSE:LNKD), the unemployment figures do not have a significant effect on the company’s top line going forward.
“[…] LinkedIn Corp (NYSE:LNKD) is interesting because it has been primarily been white collar type job sourcing and they are expanding that down to the blue collar as well, so as the general employment numbers go, should have an impact on LinkedIn but right now LinkedIn owns this market. If you are a recruiter, you almost cannot not be on LinkedIn,” remarked Peck.
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