LinkedIn surges in profitability
LinkedIn has recorded a third quarter earnings jump over $2.3 billion, with revenue jumping over 80 per cent to $252 million. This is a remarkable turnaround considering that the company recorded revenue of $139.5 million, a loss of $1.6 million.
LinkedIn has a particularly niche market, which appeals to professionals looking to profile their training, experience and aspirations within the job market.
Their revenue from different segments, including Talent Solutions, Marketing Solutions and their Premium Solutions segments, was worth over $250 million. Their costs were up by 82 per cent but their revenue more than covered for it.
Their latest share price was $115, up nearly eight per cent.
Facebook by comparison has had drops in share price, trading at $21.14 on Wednesday (October 31) which is down over 40 per cent from the $42 value when it was floated back in May.
Since then the business has battled doubt that it could sustain revenue.
Reuters has reported that employees have been given permission to sell their shares in the company if they wish to do so. That's a combined 230 million shares with a total value of over $5 billion to enter the marketplace.
Facebook founder Mark Zuckerberg has committed to retaining his shares until 2013, while a board member and an early investor Peter Thiel sold a large portion of his own back in August.
Social media marketing on Facebook has been accelerated with the company saying last week, it had increased its mobile advertising quicker than expected, generating $150 million for the third quarter.
The floating of the social media giant on the New York Stock Exchange was done so with much fanfare and Facebook was the only company to be launched with a value of more than $100 billion.
Posted by Tim Wright