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Technology Stocks : LinkedIn Corporation
LNKD 195.960.0%Dec 16 4:00 PM EST

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To: Glenn Petersen who wrote (36)5/15/2011 1:23:35 PM
From: Kirk ©1 Recommendation  Read Replies (1) of 272
 
Interesting:

Employees: 1,288
2010 results: $15.4 million in income on $243 million in revenue.
Market value: $3.3 billion at an IPO price of $35.


Market Cap per employee = $2.56M

Assume 2011 revenue will grow but even if it doubles, that is still ~ $1.3M market cap per employee.

Revenue per employee = $189K

What is average salary and benefits for each employee? Probably most of that.

But they were profitable at 6.3% of $243M revenue as profit... so if they can find a way to make more money, there is good leverage.

The trouble I see is the moat is not deep other than I use it only to find old friends I used to work with and would only really use it if looking for a job. OTOH, facebook I use all the time. It would seem easy for Facebook to add a linkedin feature and steal traffic.
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