Tag Archives: IPO

Shinal: LinkedIn’s diverse revenue stream is its strength

SAN FRANCISCO — Investors sometimes paint all the companies within a sector with a broad brush, and it usually serves them poorly.

Such was the case with the Internet stocks that went public within a 12-month period from May 2011 to May 2012, including LinkedIn, Groupon, Zynga and Facebook.

While all make their money over the Internet, LinkedIn’s business model has been consistently the most profitable for common shareholders.

That helps explain why its stock has rewarded shareholders most richly, while IPO investors in the other three companies have taken their lumps.

And based on its most recent financial report, LinkedIn continues to have something that Facebook and the others lack: a revenue stream that is both fast-growing and diversified.

Shinal: LinkedIn’s diverse revenue stream is a strength

SAN FRANCISCO — Investors sometimes paint all the companies within a sector with a broad brush, and it usually serves them poorly.

Such was the case with the Internet stocks that went public within a 12-month period from May 2011 to May 2012, including LinkedIn, Groupon, Zynga and Facebook.

While all make their money over the Internet, LinkedIn’s business model has been consistently the most profitable for common shareholders.

That helps explain why its stock has rewarded shareholders most richly, while IPO investors in the other three companies have taken their lumps.

And based on its most recent financial report, LinkedIn continues to have something that Facebook and the others lack: a revenue stream that is both fast-growing and diversified.

LinkedIn earnings soar above Street forecasts

SAN FRANCISCO (AP) — Online professional-networking service LinkedIn’s fourth-quarter performance added another line to its sterling resume as a public company.

LinkedIn’s fourth quarter earnings came in far above Street expectations, boosting the stock in after-hours trading.

The results announced Thursday extended LinkedIn’s uninterrupted streak of exceeding analysts’ projections for both earnings and revenue. It marked the seventh consecutive quarter since LinkedIn’s May 2011 IPO that the company has pulled that off, to the delight of investors.

The run of pleasant surprises is one of the reasons that LinkedIn’s stock has tripled from its initial public offering price of $45. The shares surged $12.11, or nearly 10%, to $136.20 in extended trading after the numbers came

Article source: http://rssfeeds.usatoday.com/~r/usatoday-TechTopStories/~3/ftde1CGmx0g/

The New Tech Economy: Facebook results undercut Zynga

SAN FRANCISCO — Investors can learn a lot about the prospects for one company from the earnings report of another, especially when the business of one depends on the software platform of the other.

Such was the case last week with the conference call held by Facebook executives to discuss their fourth-quarter results, which revealed why the prospects for social-game maker Zynga have gone from bad to worse.

That’s because Facebook, with its no-holds-barred move toward mobile users, is pulling the rug out even further from under Zynga, as it has been for more than a year.

The deleterious impact of Facebook’s mobile push on Zynga’s growth shows how the pace at which the Internet gobbles up entire businesses is quickening. That’s bad news for any company with a business model that

Article source: http://rssfeeds.usatoday.com/~r/usatoday-TechTopStories/~3/KP_RWJimEJA/

The New Tech Economy: Facebook results undercut Zynga

SAN FRANCISCO — Investors can learn a lot about the prospects for one company from the earnings report of another, especially when the business of one depends on the software platform of the other.

Such was the case last week with the conference call held by Facebook executives to discuss their fourth-quarter results, which revealed why the prospects for social-game maker Zynga have gone from bad to worse.

That’s because Facebook, with its no-holds-barred move toward mobile users, is pulling the rug out even further from under Zynga, as it has been for more than a year.

The deleterious impact of Facebook’s mobile push on Zynga’s growth shows how the pace at which the Internet gobbles up entire businesses is quickening. That’s bad news for any company with a business model that

Article source: http://rssfeeds.usatoday.com/~r/usatoday-TechTopStories/~3/KP_RWJimEJA/