Social Stock Updates: Facebook Inc (FB)’s Demand, LinkedIn Corp (LNKD)’s “Immediate Impact” & Yelp Inc (YELP)

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Danger Zone: LinkedIn (Benzinga)
LinkedIn Corp (NYSE:LNKD) is in the Danger Zone this week. LNKD continues our theme of hot stocks that have overshot their fair valuations. So far this year, LNKD is up 110% while the S&P 500 (SPY) is only up 15%. LNKD is a high-momentum stock in a popular sector, so investors are turning a blind eye to its competitive weaknesses and high valuation. Most people are aware that LNKD is expensive compared to its current earnings, but few people seem to aware of its off-balance sheet liabilities and the alarming level of profit growth implied by its stock price.

Facebook Unveils Tools for Showing Posts About TV News (Bloomberg)
Facebook Inc (NASDAQ:FB) is rolling out new tools that integrate posts from the world’s most popular social network with television broadcasts, stepping up competition with rival Web companies. News organizations such as CNN and NBC’s Today Show will be able to display real-time comments from Facebook users and companies that have designated their posts as public, the company said today. The features will also offer aggregated information on what’s generally being discussed on the social network based on gender, age and location.

Linkedin Corp (LNKD): Could Linkedin Substitute A Recruitment Agency? (iStockAnalyst)
With 238 million professional members worldwide, LinkedIn Corp (NYSE:LNKD) is a powerful recruitment tool. There is an obvious risk of substitution for a professional recruitment agency where the value proposition is very similar to that of LinkedIn. LinkedIn maintains a database of candidates; network with those candidates to assess career status and aspirations; connect those candidates to relevant third parties that are looking to hire.




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