Linkedin Corporation(NYSE:LNKD)’s status as a rising star on the internet on Wall Street is expected to rise even further on its third quarter earnings.
The results are supposed to be out today after the stock market closes. It will need the estimates of the top-notch analysts in order to propel LinkedIn’s outstanding stock to even greater heights. A disappointing performance could drag down a stock that has more than doubled since the time LinkedIn had gone public in May of 2011 at $45.
The warm embrace that investors have showered on LinkedIn lies in contrast with the cold shoulder that other reputed Internet companies have received ever since they went public in the last 18 months. Facebook, Zynga, Groupon and Pandora Media are some of such examples. All deal well lower than their initial public stock offering prices.
LinkedIn is doing better than its Internet peers since its growth has been progressively accelerating as more people around the world share their professional backgrounds and desires on its networking service. That has encouraged more head-hunters and companies looking to hire employees to pay the fees that LinkedIn charges to gain better access and more insights into the information that is posted on website.
Things have been going pretty well for LinkedIn. Analysts have started to raise the financial bar that they expect the company to clear. In the second quarter, average revenue of the analysts was only $1 million, or less than 1%, higher than the top end of management’s projections.
LinkedIn has been adding more features recently and redesigning its website in an attempt to give people a reason to visit more often and stick around longer. The company has also been rolling out more applications for tablet computers and smartphones to make it easier for members to engage when they were away from their homes or offices.
Shares of LNKD are trading flat in early session.