LinkedIn Profit Rises 30 Percent Q4 2011- Social Networking Is Still On The Rise:
LinkedIn is making profits. Unlike some of the other newly public website companies listed on the NASDAQ, LinkedIn is making money and proving that the social media sector is growing. Ahead of Facebook’s forthcoming initial public offering this year, web analysts and social media experts are wondering if social networking can make investors money. LinkedIn’s profit rise in the fourth quarter of 2011 is evidence it can.
LinkedIn’s profit rose 30 percent in the last quarter and its revenue more than doubled. The company’s fourth quarter 2011 net income increased $1.6 million dollars from the prior year to $6.9 million and the social networking site for professionals exceeded Wall Street analyst estimates which gave a lift to the stock in after hours trading to 83.15 +6.76 (8.85%).
Social Media Is Growing
The rise in LinkedIn’s profit is good for all social media sites and with disappointing public offerings from the websites like Zynga or lackluster earnings from Angie’s List, LinkedIn reminds the investor community that there is space for more growth. If investors believe the site will continue to grow, they may pay a premium not only for LinkedIn but also for similar sites like Facebook which is set to have one of the biggest IPOs since Google. Social media still has legs and makes profits – that’s what’s ‘in’.