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“I Bet You $117,238.20 That This Stock Explodes in 2013″ (Motley Fool’s “Get Rich on Wednesday” Pick)

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Now THIS is a fun ad. Jeremy Phillips is the Chief Technology Officer at the Motley Fool, and he starts off their new ad with a great quote: “I plan to get rich on Wednesday morning — care to join me?”

Well … yeah. Isn’t that why we’re all fretting over our investments, saving precious dollars, and building strong opinions about the balance sheets and business prospects of every company we run across in our daily lives?

OK, so some of us are not entirely obsessed — but yes, most folks who buy stocks are hoping to get rich … and if we’re honest with ourselves, we want to get rich fast. Sometimes with real hope built on great stock selection, patience, portfolio allocation and counterintuitive thinking, sometimes with the same plans that a dart player makes as he steps to the line. So what is Jeremy Phillips talking about?

Usually we hear from folks who pick stocks and edit newsletters, the guys who delve into income statements and make forecasts and stand naked with their portfolio before the world. But Phillips isn’t an investment guy, he runs the Fool’s website and servers and makes sure all that stuff works for their gajillions of readers.

But he says he’s taking an idea that Tom and Dave Gardner have both recommended, and he’s running with it — putting a huge slug of his own money on the line. Here’s how he tells the tale:

“I can’t wait for Wednesday morning.

“Because I’ve just made the most important financial decision of my life. And starting in just 96 hours, I’ll see if I was right…

“If I win my bet, this stock will make a big pile of money for me by the end of 2013.

“If I lose, it’ll remain near its current bargain price. Maybe even under it. And I’ll be out some (but not all) of my $117,238. Meanwhile, I’ll still own stock in a company with a rock solid business model — one that’s poised to dominate a $130 billion market, with no direct competition.

“That’s why I don’t want you to bet against me. I want you to bet with me…

“Place YOUR OWN bet on this stock. At whatever amount you’re comfortable investing. That way YOU can win if and when I do.

“Look, I wouldn’t be putting $117,238 of my own cash on the table if I wasn’t dead serious about this opportunity. That’s a lot of money for me… in fact, it’s FIVE times the investment I have in any of my current stocks!”

I’ve never bought a stock that made the top five list of “most important financial decisions of my life”, so I may be a bit too much of a fuddy duddy to appreciate this — but I do have outsized positions in stocks that I really have strong feelings about, so I can imagine how it feels to buy a stock position that’s far larger than any you’ve bought in the past. Whether or not Phillips is right, it seems he really believes in this stock that he thinks has the opportunity to take over a $130 billion sector.

Will you agree with him? Well, before you make that call you’ll have to know the name of the stock so you can do your own research. So, assuming you don’t want to pony up a couple hundred bucks to subscribe to Rule Breakers to get your answer … what else do we get by way of clues so we can pin the tail on this donkey a bit more free-ishly?

“In a nutshell…

  • This company’s revenue is growing more than 2x as fast as Google and Facebook. And more than 3x as fast as Amazon.com and Apple.
  • In fact, more than 59,000 of Apple’s own employees use its core product. Many of them every day.
  • The Wall Street Journal named this stock the ‘biggest internet IPO since Google.’
  • This company has a foothold in over 200 countries, with more than 200 million users.
  • But they’re adding two new members per second. That’s right, by the time you finish reading this sentence, they’ll add 10 new people to their system!”

Well, the only reason this was the “biggest internet IPO since Google” was because it happened before Facebook came public … for what it’s worth, the Wall Street Journal and similar sources also called out disasters Zynga and Groupon with similar “Biggest since Google” headlines. And at the time they were the biggest IPOs in the sector since Google … not the best businesses, obviously, nor the biggest technological advancements, but the companies that got the highest valuation from the stock market.

So yes, that’s enough for us to figure out who this company is … but we’ll keep you in suspense for just a moment longer while we excerpt a few more of the clues from the ad about this company’s businesses:

Irregulars Quick Take
Paid members get a quick summary of the stocks teased and our thoughts here. Join as a Stock Gumshoe Irregular today (already a member? log in at top right)
“Business Segment #1: 74 million Americans just like you and me

“People of all ages who are looking for a better job, to meet new business partners, or to find employees who are a perfect fit for their company. The more of them that join, the more that others want to join too, and the more incentive they all have to keep using it, and to pay for premium features. That’s called the ‘network effect’ and it’s been the engine of growth for every business from AT&T in the 1920s to Microsoft in the 1990s to Facebook in the 2010s.

“Business Segment #2: Madison Avenue

“As Google has proven with its great success in recent years, the ‘Mad Men’ era of advertising is over. Today’s Don Drapers use ‘narrow-casting’ opportunities instead of mass media broadcasting to get more bang for their buck. And they also cherry pick their best customers… like this company’s users, who average more than $100,000 a year in income. Advertisers will pay almost anything to get access to folks like that.

“Business Segment #3: The global ‘war’ for high-tech talent

“Better employees with better skills and better fit mean more profit. But some of the top talent is ‘hidden’… in other countries, in employees who aren’t actively job-searching but would jump at a compelling offer, or in traditional résumés that emphasize college old-boy networks instead of actual money-making skills.

“The Economist calls it ‘the battle for brainpower.’ McKinsey Consulting calls it “the global war for talent.” But whatever you call it, it’s what will separate great businesses from bankrupt ones in the decades to come, and our Rule Breaker stock is the best ‘pure play’ out there for investing in it.”

So who is it? Yes, the Thinkolator confirms that the stock Jeremy Phillips is betting big on is LinkedIn (LNKD), the professional-focused social networking service that’s also building a recruiting “matchmaking” business on the backs of their 200 million or so members.

You’ve probably heard LinkedIn talked up before — as the social networking company with a business model, a contrast to Facebook’s “gather a billion people then we’ll figure out how to turn that into a business” strategy. There’s a lot of money in employment advertising, as we found when Craigslist, CareerBuilder and Monster.com started to sound the death knell for newspaper help wanted ads several years ago.

Is it enough money to make LinkedIn a great business? Well, I’m sure Jeremy Phillips and the Gardner brothers know LinkedIn far better than I do — the ad says that Dave Gardner has recommended the stock twice, and that Tom Gardner personally has it as his largest stock position, and it’s true that in the past when Dave (Mr. Growth) and Tom (Mr. Value) have agreed on a stock, it has often done very, very well.

Me? I don’t like LinkedIn. That’s just a personal response to the product — I have used it a bit, I find it to be of little value and it seems to me to be full of the bland interview chatter and irritating impersonal connection-making that you see in any networking cocktail party. I also don’t like the cocktail parties, despite my fondness for cocktails.

But that has nothing to do with whether LinkedIn is a good investment, it just means I’ve never gotten around to using it very much and I’ve not felt compelled to really examine it as an investment.

LinkedIn does report this week (though according to Yahoo Finance it’s actually on Thursday, not Wednesday morning as the teaser suggests), and it is growing like gangbusters — but it’s also really, really, really expensive by almost any valuation metric you can come up with. That’s a positive criteria for the Rule Breakers service, they like to pick stocks that the conventional media thinks are overvalued, because most great market-changing growth stocks have been called “too expensive” by the financial media at some point… and philosophically I can understand that, but it still makes it really, really hard for me to buy stocks that carry a forward PE of 100.

If they can keep up this earnings growth, they may well be able to grow into that kind of valuation — they’ve just about doubled earnings in almost every quarter they’ve reported as a public company (they went public in the Spring of 2011), and the stock has more than doubled since the IPO (the IPO priced at $45 but the stock doubled on that first day, it has since been volatile traded down to about $60, but not for long, and is now above $120).

The basic business (I don’t use it, remember) is to help people make professional connections — sharing resumes and networking tips instead of going on Facebook to share pictures of cute cats and drunk teenagers. And it apparently works quite well, they can indeed sell to three different distinct groups: Advertisers who want to reach well-paid professionals, job-seekers who want upgraded memberships to help with resume building and connection-making, and recruiting officers who want to find qualified employees. So there is a great business case to be made for the company, and a reasonable projection that they could become an even bigger player in the HR and recruiting business … I just have no idea whether it can or will grow big enough, fast enough, to justify the current valuation. For that, you’ll have to make your own call.

If recruiting is indeed a $130 billion business, which sounds like a reasonable estimate (you can get different estimates from different folks in the personnel business, but it is a big sector), and you think that LNKD can become a real linchpin of the business, then there’s certainly enough money out there for them to become far larger — it’s a $13 billion business right now (that’s the market capitalization), with less than a billion dollars in annual revenue, so there is a big potential runway.

The free summary of Morningstar’s take on this stock sums up my initial reaction to the company pretty well:

“In the market for social networking, no company currently monetizes its user base better than LinkedIn. With an attractive business model and a user base that may never leave, this wide-moat firm is one of the few social Internet companies to truly hold a defensible position, in our view. We hope the market’s unbridled optimism subsides and the stock becomes cheap enough for us to recommend.”

So that’s how I’m feeling after my few minutes of checking out LNKD — great business, too expensive even after reliably doubling their earnings nearly every quarter. How about you? What do you think about LNKD or about the LinkedIn services? Ready to ride this to the next great internet fortune, or will it end up disappointing those who bought in with unbridled optimism? Let us know with a comment below

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96 Responses to “I Bet You $117,238.20 That This Stock Explodes in 2013″ (Motley Fool’s “Get Rich on Wednesday” Pick)

  1. Love LinkedIn, but wouldn’t buy the stock. Way to expensive for my budget. Of course, I’m a beginner with a monthly investing budget of less than $200. What would be nice is for someone to come out with a program for people like me, the kind that doesn’t have “Just a simple 10k investment” money.

    • Mikavexo:
      Check out Sharebuilder.com for a way to purchase smaller numbers of shares in an economical manner. If they have a minimum account size, it is probably small and they specialize in providing access to small lots of stocks.

    • Ditto on Sharebuilder. I love it and have built my portfolio up to a respectable amount starting with nothing last January.

  2. I am also listed on LinkedIn. and have been for years, I never get any decent responses from there, NOR any decent “connections” to amount to that proverbial ” hill of beans”.
    I do not find it useful either, and don’t see how this will help anybody come up with ” connections” that will make them employed or “in business” profitably. I found that most are “posers” and “pretenders”. I shall not be investing in LinkedIn, It sounds to me as if (like FB) they will go IPO, and cash out( and move to Belize ). and leave it to ” dangle ” in the wind. SO, in short , NOT A FAN .

  3. I am with you Travis. I believe but think that it is priced for perfection. I also feel like they abuse me with email attempting to upsell me. I feel fairly certain these campaigns help their growth a ton but at some point people are going to push back and call them all spam. Also I have never found their group feature to be nothing but annoying.

    • Are you talking about Motley Fool or LinkedIn trying to upsell you? MF’s sales pitches are annoyingly insistent, but they do have an exemplary, super-fast refund policy if you want to try out one of their higher-priced services and found out that it isn’t the right thing for you. Just read the fine print on what to sign up for.
      I’ve been a member of LinkedIn for several years and find it great for keeping in contact with my former co-workers. It can be a bit of a mutual-admiration society.
      I also own shares (as recommended by MF) but only a very few! Yes, they are expensive.

    • I am down w/Travis and Kyle on this stock and am late to the party on this. If I would’ve had a chance to own some at the beginning… maybe. But the one thing that confounds me no end is their incessant pitch for me to provide them with my “contacts” so that they can SPAM people who I’ve worked hard to get to know; people I can contact all at once using my Gmail account. What can they do that I can’t already do with my contacts. They put up people like Richard Branson and the soup of the day “bromance” characters that we’re supposed to think are innovative? Put up pictures of hot female CEO’s, CIO’s, HR Alpha females, and hot looking regular hotties and I’d probably share my contacts with them… but not much else except chatter and hopefully pillow talk.

  4. I’m personally not attracted to companies whose business plan revolves around advertising revenue and user subscriptions, so I have no interest in LinkedIn (or Facebook, for that matter). I think that this sort of business is relatively easy to replicate, and, as technology improves, it is far easier for a new entrant to take advantage of and implement that new technology than it is for current market leaders to overhaul their entire existing platforms. Maybe I’m wrong, but I think that it is just as likely that LinkedIn no longer exists in ten years or is a niche player as it is that its stock price has increased 200%.

  5. I thought bought buying when it went public. $80 something. Im on Linkedin, with a basic account. It’s another social networking site. I couldn’t even tell you if they have advertising?
    How do they make their $? Unless I bet an invite, I don’t even bother. But when I had a Facebook account, I was hooked. There is nothing Linkedin has I need or want, so how is this a good business model? I think Facebook has more potential personally.

    • It being a good business model has very little to do with whether or not YOU find it useful. If a good portion of the 200M users find it useful, click on ads, or buy the subscription, then it may be a good stock. It’s easy to make the mistake in stock picking that, if i don’t like something, it must not be a good stock. Sometimes that can be helpful but often times not.

  6. Love to chime in on this one. I am on LNKD myself, but find it irritating at best,
    and mostly useless. It is a stupid product with worthless pumped up inaccurate information about people you don’t want to be bothered by, truly. I get annoying
    pop ups from LNKD every once in a while from people who are soliciting me, and
    even when I try to respond to keep them from hounding me, the LNKD system is
    a pain in the ass to have to deal with. Forget this Motley Fool recommendation, short LNKD and go the other way with this one. You would have to be a Fool to bet the farm on this one.

    • Well, I guess that is why they are the experts, and you are not.
      Since the time of the above post to now, the stock has almost doubled, from $120 to $219. And now the fool crew is running the same ad again.

  7. I have barely used Linked In and, like other services, can’t figure out how to do the simple things I want to do with it and thereby give up quickly.

    Everyone HAS a linked in account, but how many USE it?

    The way many stocks have been going, this COULD BE (I would NOT do it myself) a short opportunity – buy on rumor, sell on news. And as you have pointed out, if they disappoint, look out.


  8. While am on both Linkedin and Facebook; find both of limited personal value; and would not, at current numbers, consider investing in either, or in Google. Looked up Linkedin, Google, and Facebook for price and P/E. Google is $775 and 24; Linkedin is 123 and 805; and Facebook is $28 and 2880, respectively. These stocks are for expensive gambling rather than investing,

    • From Feb 4th 2013, where Chuck says GOOG was at $775, LNKD at $123, and FB at $28. To Feb 2nd 2014, and even with the small crash that’s greatly affected nearly every big name company recently, FB is at $61, LNKD is at $215, and GOOG; after dropping nearly $50 A SHARE (in one day), is still at; $1133.

      I’m not a fan, or a target demographic of any of the companies listed, but anticipating people’s need to create the illusion of relationships through technology would’ve damn near doubled your money. Hindsight is 20/20 though.

  9. Don’t use Linked-in much either, but know people who do.
    I don’t see why Google+ or Facebook couldn’t offer all of Linked-in’s features and more. Both let you classify your connections to limit what people see. I’m not a programmer, but i don’t see why link-ed couldn’t be easily added to G+ or FB? And if it could it makes LNKD a very risky investment.
    Anyone have any thoughts on this?

  10. I hate Linkedin (and facebook too). From what I can gather, Linkedin hijacks your outlook contact list and sends them all an invitation from you to join. I got numerous invitations from people I had corresponded with for business, but none of them said they sent me or intended to send me an invitation. So I distrust Linkedin and refuse to join or have anything to do with them. I do have to admit I initially did join facebook as a way to interact with my two daughters living in other states, but I quickly found what was on Facebook was a wasteland of people telling me they were getting up and having coffee and that they thought they would visit the bathroom – details about their lives and bodies I never need to hear about. I will never visit Facebook again. What a total wasteland in my humble opinion. But despite my opinions it seems like a lot of people still like to waste their time on such nonsense so maybe either would be a good investment if priced reasonably. But for me there are two many other opportunities that I actually like and am impressed with. Of course I am still holding Gasfrac so what do I know.

    • Like John, I joined Facebook to keep in touch with relatives, especially when they are traveling. I found the way to do it was to have a Group for them only. When I open up Facebook, I open up their group, review what I see, and log off. — I would never invest in these networks, however. As others have said, it’s too much like gambling. And who knows what the next fad that will replace these networks will be?

  11. My daughter put me on Linkedin I guess you would say . I don’t use it any way. Any way I don’t even do Facebook so as far as I know its all a pile of crap. I can say that most of you seem to have it right it looks like gambling to me. If and thats a big if just one of these ole boys who sends out the end of world stuff that the market is going to 6000 and lower I can see these kind of stocks going to zip o. I think i’ll keep my money in oil and whiskey.If I can’t burn i’ll drink it.

    Happy investing to all.

  12. My, amazing number of comments and agree with all of them. I joined linked in when it first raised its head and other than a continual barrage of emails regarding people I should link to (for what???) it hasn’t done anything. I think that most just “collect” people.
    Very strange.

  13. Comment above: ” Linkedin hijacks your outlook contact list and sends them all an invitation from you to join. I got numerous invitations from people I had corresponded with for business, but none of them said they sent me or intended to send me an invitation.” That was exactly my experience also, only they grabbed my Entourage list instead of Outlook’s. A couple of class action lawsuits should already have made compost out of these “social media” scammers, if citizens still had a government that represented them instead of corporate donors.

  14. I jumped on a bunch of social networking and gaming stocks for my sons’ education accounts. I figured… what the heck… try $500-1000 on each of these stocks and see how it goes. FB – underwater and still holding. ZNGA – dumped it after losing about 50%. P – dumped after roller coaster. LNKD – the only one of the 4 that has made money. Been on the ride from around $90 a share. If FOOL is in, I might go buy another 10 shares. But I sure aint risking $117,000.

  15. Wow! I don’t have LinkedIn or Facebook accounts, and don’t miss them. It must be the non-investing generation that uses these things, since all the comments from the investing generation are so negative.

  16. Facebook’s main useful use is for groups of friends to keep track of each other, so they can decide where they should meet to drink.

  17. I was on it today. I would who I was looking for, but could not send an email to her. also, I could not leave a message. I then got off, po’ed went to the net, got her business address, and sent her an email and got a response in 2 hours or less. And they wanted me to pay for an email to her???
    after I typed in an email, then they ask… just got me more upset. If that is their business model… it is missing something..

  18. So if I’m reading this right, everyone here thinks Facebook is for finding drinking buddies and linked in is less than useless? But even though none of you use them, you feel very qualified to comment on their value as stocks and to discern whether their business models are going to be profitable? Interesting…

    It is particularly odd to me, as I use fb personally to keep up with friends and family, and while I don’t use linked in as a recruiting tool, I do use it frequently to find local business people to do business with in various projects.

    Even on a personal level, I needed a car dealership to do something with my car so I popped on linked in, got the email address of my service manager, sent an email and set things up. I bypassed the dealership red tape and had an enjoyable experience with someone who treated me as a business partner instead of a customer.

    In my experience, linked in and Facebook are UP TO YOU how you choose to use them. If you are imaginative, innovative and creative then you can find ways to use the information (that’s all they are folks, information) made available to you through these tools in ways that allow you to accomplish your goals more easily.

    Or you can sit around like grandparents and complain about everything you think is wrong with them, which has no real bearing on whether they are good investments.

    • Tom,
      [I had a Tom Steele as a teacher MANY years ago, great guy]
      It’s refreshing to see a post like yours which is:
      - Well articulated
      - Formatted for easy reading
      - Spell checked

      While I have never used LinkIn enough to have said I gave it a fair try, I was frustrated right off the bat with their email suggestions and difficulty to find what I needed.

      As for Facebook, I primarily use it as a business tool, though not highly effective. I really do see where friends and family COULD use it to keep in touch over long distances. Unfortunately, FB has done such an incredibly rotten job of respecting users privacy and making privacy controls easy to understand and use that many have given up on it.

      [Zuckerberg's public decree that privacy should be abandoned have not helped FB's popularity with generations older than 30 years old]

      Ultimately, though, I agree with you that it is up to each person how a service like that is used.


    • Hello Tom,
      Yes, Facebook and LinkedIn have some utility, but that (by itself) doesn’t make them particularly good companies to invest in. GeoCities was fun and somewhat useful, too, if you’re old enough to remember them. . . .

  19. I have been a long time Linkedin user and keep in touch with people i have worked with over the years and have submitted recommendations for several people. I enjoy it and see the value, but would never buy the stock. One of the ways they earn money is to get members to their premium services which i have not done and never will. This site has more value for people seeking employment.

  20. Bought LNKD sometime back, still holding it.
    With the recent trends in FB & ZNGA, Got both of them, will hold for next few years to see which way they swing..

  21. Linked in is a very useful website! All of my business contacts are here, I don’t have to maintain an address book or keep track of anyone’s email address. Everyone updates their own info. If there is someone I want to talk to and he/she is not a contact, I always know someone who knows them, (which the site tells you). I have 500+ contacts and it’s an invaluable tool. The stock is crazy expensive though, so not sure if I will buy any…. I am a MF member though and am really happy with their service, although their pitch emails really really turn me off.

  22. Yes indeed. One curious thing is that I received the Jeremy Phillips pitch yesterday with the headline “I plan to get rich on Monday morning” and never received the “Get Rich on Wednesday” one.

  23. This is proof that the Internet bubble is back. Revenues in millions for the last 4 quarters working back are 303.6, 252,228 and 188 and earnings per share are .35,.02, .03 and .05.

  24. Hi Folks – what about some options on this, so we don’t have to “invest” a lot of money? Next Jan 2014 $190 were $2, now they’ve jumped to $7! Once they drop a little, (if they do), might be a good opportunity? cheers, Roger B

  25. I have to agree with the many negative comments regarding FB (I also receive frequent “invitations” to join LNKD from friends of mine who would not dream of asking me to join.

    Facebook represents, par excellence, the utter blandness of modern civilization, with its assumption that we are all interested in these deeply banal details of one’s daily life.

    My profile on FB is a tissue of lies, since I say I was born in Russia, about 5000 miles from where I was actually born. As a result, the right hand side of my FB page is, I notice on those infrequent occasions when I tread in the bs of that site, full of advertisements in RUSSIAN.

  26. Reading a review on LNKD from another source this morning and they noted that forward PE is 1,000. As another commenter mentioned they also pointed out that many have signed up for an account but few are actually using. Their recommendation was to either short or sell puts. Not sure I am that brave yet but an interesting thought.

  27. Terence I am not going too disagree with Motley Fool that LNKD is and will give us a pos. pop,but is it a stock you want to buy and look the other way on. You could very well look back and see your money heading out the door or just plan gone. I know the fact that 2000 and the end of the internet bubble has a lot to do with our feelings. I didn’t get hurt to bad back than because I wasn’t that deep into the internet dream. I do know some people who I thought had better sense who lost 100′s of thousands of dollars. My wife’s uncle lost over 100 thousand bucks while he was on a trip to west Tx. from La. over a matter of two days. He had worked for BP and others for 30 plus years and he took a buy out in the 90′s and lost all that and more in that mess. He is just one of many that I know so when I put money on a stock I like to feel that I can invest and carry on with life and not worry my self to an early grave worry about it taking wings and flying out the door. I am smart enough to know that any co. can go belly up in this world,but you will see or hear signs that its going bust. To me real investing is buying some thing real that makes some thing real and over time makes you real money. I know I want get rich in the market,but I want see a ton of money go into thin air on some gamble. If I want to gamble I buy a lottery ticket or go to some form of gambling house.
    Good luck happy investing to all.

  28. See my post above. I followed through and added 20 more shares. Also bought a 130 call for $2. Planning to hold my shares long term and sold the call for $16. Wish I would have bought more than 1 contract, but $200 was all I was willing to gamble with.

  29. Good company but poor stock. My valuation (I judge them to be about 10–40% low) is about 55->60. Sometimes a good well run company sets expectations of investors so high that no manager can meet them. I sometimes look for a company that was poor run (investor expectations low) that now has a new highly regarded CEO at the helm. Apple years ago is example.

  30. Based on this article, I reasearch LNKD and bought 20 Mar Calls for $5000., expecting a 3% to 5% return for the week. The stock gapped up 20% after reporting earnings and I sold for $17,000. profit that day. Thanks Travis for spotlighting this article. I don’t consider LNKD a good Buy to Hold stock as I don’t care for social media stocks for that purpose, but this was a pure speculation play, not for the faint of heart. This AD from The Fool was pure pump and seems to have gotten attention. Also, there was a large spread of Put’s, which squeezed the bears as they ran for the doors at opening Friday morning.

  31. I use Linkedin. A couple of things to consider. 1. Your page is like any other web site, if you want to be noticed by recruiters, you need to spend time translating your resume into a keyword oriented page that highlights your skills and experience level. LinkedIn has the potential to run rings around the resume oriented recruiting sites. LInkedIn is trying to encourage frequent updates and additions by its users that makes a static resume a weak competitor. Recruiters who are looking to poach a particular skill from a competitor have never had it easier to find that person. 2. The site is a classic example of freemium pricing. Individuals get quite a bit for free and the additional functions that paying up costs are mostly not worth it for most users I know. The companies that have accounts are more interested in paying since it gives them access to the search tools to go poach that next tech professional they need. They cost justify it as their recruiter can find the person and save them 25 to 50 thousand in commissions that outside recruiters would charge them. One hire found on Linkedin easily pays for the cost of member ship and then some. 3. Revenue growth will come from companies willing to pay. I would guess the biggest companies are already on board. So when does US revenue growth hit the wall as they dig deeper into the smaller companies with less frequent hiring needs. They are also looking at Europe and Asia for growth, so if they figure it out the revenue could grow for awhile. It just isn’t going to come from basic users. I subscribe to MF Stock Advisor. Mostly happy with it and wish there were fewer teaser emails (as if they don’t know I already subscribe).

  32. Buffet does not have a FB ac, wise if you think LKND is nerd too! This Jeremy dude ia going to hate by fool’s investors big time!

  33. Thank you for the rundown, makes sense. Nothing is guaranteed, you must do your own research, and clearly these guys are using this to peddle their service, so they have a conflict of interest. That said, apparently they do believe in this stock, but they are not fully disclosant they quote all the gains, but not the losses. And in the email blast give no indication of their funds true performance/returns, relative to other known benchmarks. If you are real, and honest you give the data, on annual returns your fund made each yr, and don’t try to bs.

  34. Gumshoe is very good. I just started reading the info on this email because I just got the email from Motley Fool today. Wow, guess the original went out weeks ago…. about 4 to be exact, back then is was $120, now $170…who would have thought. Could have would have should have jumped in back then…. Oh I wish I had a crystal ball… 50% increase…
    man o man.

  35. Wow, I just got the email today and LNKD has indeed gone up a fair bit since the article.
    Hmmm… A P/E of 900+ though. Pfwhoar.

  36. I had 2,500 shares and LNKD beat earnings but gave weaker guidance going forward. Stock went down $26 plus and I lost about $60,000 of my hard earned cash.

  37. I enjoyed your review of Jeremy Phillips’ video. By the time the video was done I was sure I would be buying some secret oil or potion that hopefully grew hair. LinkedIn is a funny site. You feel you need to be on it IF you are unemployed. Otherwise it’s nerdy. Way too much junk on it. It had early on promise of what professionals would want. Now it’s just another Facebook without pizzazz. I did not buy the stock when it started and I don’t believe in it nor Facebook. The social sites look to be easily overtaken by tomorrow’s new fad. But I could be wrong. Anyways as far as Jeremey and what he sells – there is enough free resources out ther like this one so there is no need to make others rich when you can get the data free. Isn’t that what the Internet IS the about!

  38. Your video presentations continue to freeze and ask me to check my internet connection. The connection is perfect. As a result each of the last 3 times I was tempted to subscribe to Rule Breakers, it failed. Love to know what stocks your talking about.

    • Hi GT,
      The article on this site is talking ABOUT Motley Fool’s subscription teaser – it isn’t the actual teaser itself. If you follow the Gumshoe’s analysis (above) you won’t need to worry about trying to view Jeremy Phillips’s teaser and having your computer freeze up. The comments from other readers are well worth reading too.

  39. Certainly glad I took the time to read everyone’s comments here. I too have my reservations about investing (gambling) in a stock with such a high P/E ratio, then again, over the last year I just watched my Orbite shares (ORT.TO)my largest holding) drop ~80%.
    I do use Linked-In myself, but must admit not much – mainly because I’m not subscribed to their premium service, so I can’t connect other people too far out of my network.
    Good luck to all who embark in this investment though. Just keep your stick on the ice and your eyes on that puck so you avoid getting fleeced.

  40. I did like Linked In, I looked at their projected earnings estimates and as of May 28 2013 as I type, the next quarter is substantially lower and the next just slightly higher. Taking in to consideration the user comments on here and dubious business practice on the part of Linked In, I am convinced unless they dramatically come up with a change that will keep up the earnings and better it’s reputation it’s likely to go the other way. Stock growth is all about earnings and earnings growth. If you do something to damage the brand or reputation that could hurt the bottom line too. We’ll see?

  41. You’ve probably never heard of this social site, it’s called ZURKER, It is customer owned, maximum share ownership is 500 @ $1 per share. Log on if you want to see something different.

  42. He recommended this stock in February when the price was around 125. It’s August 2013 and the price around 240. If he has not sold yet, he is currently up over $100k. In hindsight it was a good recommendation.

    • I bought a half position in Jan/2013 and as you can see it has climbed from there, up almost 40%, however, right now it is very close to the 52 week high, not sure where it is going from here, I have a trailing stop and will sell it if it ever hits that. I would never put more than my “position size” on a speculation stock, and no more than 2 position sizes on any other, best regards.

      • ps – as for the business of zixi, they provide a great service, mostly to corporate accounts, in my opinion it is going to be similar to MSFT but much much smaller once it levels off. They are not exposed to operating systems, database/office productivity (except email), gaming and other venues so the curve and size will be much smaller.

  43. I deactivated my Linkedin profile after my password was hijacked. I’m not on FB but bought the stock anyway because social media looks hot right now. LNKD has gone way up, but FB seems to be getting started after a bad IPO. YELP, YY, QIHU to name a few more.

  44. +thumbs down on nuance as per Cramer may be a good buy becus of it gasfrac never reach its stated potential in fat u can call this a lemon however all is not lost BUYnok for a rebound

  45. It took me two or three lines to figure that he was talking about LNKD. See, I would fire someone like Mr. Phillips. Instead of making a sales pitch using incognito, he should use the value of the product he is supposed to market. Using another product to market your own has never been a good marketing strategy. LNKD may be just like Google or Amazon… but the credibility of Mootley Fool is at stake due to his disingenuous proposal. Sounds like Obamacare to me…

    • I agree entirely about this approach being disingenuous. For some reason I have just today received a mailer form MF which links to this item ( I subscribe to Shareadvisor in the UK). I find it increasingly irritating to have to sit through up to 50 minutes of fatuous repetitive drivel which keeps ‘telling me what its going to tell me” and always ends up being a promo for some sort of newsletter. If MF wants to advertise one of its services, then do just that and remember the KISS principle. As for LinkedIn, I have belonged for years and find it even more pointless than Facebook, full of pompous individuals trying to make average careers and dubious ‘skills’ sound interesting by using the same overblown industry psychobabble as everyone else.

  46. Don’t like LNKD (the product), had no use for it. But the stock looks like it’s consolidating for another breakout. Even so, there are other stocks out there with less runup and more potential. Like FB which is the only stock that I’m stopless on.

  47. Just sat through the 30+ minutes getting more annoyed, as became obvious the FREE recommendation they promised to give was not going to be revealed for free.
    Not what I expect from the MF, but then it seems to have gone commercial in the last 10 years compared to it ‘community’ beginnings
    I also suspected it was LinkedIn they were recommending. I don’t have any strong views on that, but would have taken them more seriously if they had mentioned the company near the beginning and then given the background on why and the offer to fiollow similar things on the ir newsletter etc

  48. Funny, that ad is still there and while pretty much everything remains the same, it says now: “If I win my bet, this stock will make a big pile of money for me by the end of 2014. (instead of 2013)”

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