Still, LinkedIn’s share price has already doubled since the IPO, and currently trades at an expensive looking EV/EBITDA ratio of more than 100 times. However, if you want to invest in social-networking companies, Linkedin is definitely the most attractive stock in the market right now, as it’s expected to grow at a much faster pace than many of its industry peers.
Nevertheless, I still think investors should wait for the shares to drop to the mid-to-high $150 to $175 level, as the shares present an attractive risk/reward there. Sub-$175 is where investors should start a long-term position.
Today’s tough job market has called for employment seekers to become much more creative in order to stand out – and what better place to do so than on eBay Inc (NASDAQ:EBAY). This diverse website – once considered “the world’s largest garage sale” – is no longer just a spot for selling old Pez dispensers and baseball cards.
The website has now branched out from primarily “cheesy” sales of pre-owned products from individuals to a major hub for corporate retailers, as well as real estate sales, service advertisements, and a place for job seekers to find work.
eBay Inc (NASDAQ:EBAY)’s diversity has paid off handsomely, too. The company ended the first quarter of 2013 with an increased profit margin of nearly 20%, and revenue of almost $3.8 billion. One potential fly in the ointment for eBay could be the passage of a new Internet sales-tax law. It remains to be seen, though, as to exactly how – or how much – eBay Inc (NASDAQ:EBAY)’s traffic and transactions would be affected in the future. Presently, analysts estimate the stock price will rise by more than 21% over the next 12 months.
As with both LinkedIn and eBay, Monster Worldwide, Inc. (NYSE:MWW) will also likely need to continue offering more diversified online services to its site users – otherwise it could be at risk of losing job posters, job seekers, or both. And, like many other companies with a predominantly online presence, the new key to more site visitors – and transactions – is to provide enhanced mobile applications.
The bottom line
Although Monster Worldwide, Inc. (NYSE:MWW)’s 2012 financials were not up to expectations, the resulting plunge in share price may provide investors with an opportunity to obtain a great growth play. With analysts assigning a one-year average target price of just above $7.30, investors would do well if they could purchase this stock at or below $5 per share.
The article Job Seekers Can Mean Profits for Shareholders originally appeared on Fool.com and is written by Nauman Aly.
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