LinkedIn's Earnings: What to Watch For

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Aug. 1 (Bloomberg) -- Wedbush Securities' Michael Pachter discusses LinkedIn's potential for growth and previews the company's earnings with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Linkedin has been every single earnings estimates over the last eight quarters.

Are you and expecting them to do the same today?

I think there will absolutely crushed on earnings for the revenue numbers probably will come in close to consensus.

That implies $50 million in sequential revenue growth on the $300 million base.

Their guidance is kind of a joke.

The ibita would be down.

That is simply not possible.

The street is sequentially flat and i am sequentially up and i think there will crush.

Linkedin has three core revenue streams.

Which one do you think as the most opportunity?

Which one are they not maximizing?

They have not even scratched the surface of what they call talent solutions.

It matches up job-seekers with hiring corporations.

There is recruiters in between frequently.

If you think about their base of 230 million members, the average professional employee changes jobs every seven years.

30 million of those members are jobs seeking every year.

Assume there is $1,000 of value in the system that some recruiter or corporation or job seeking employee combined are willing to spend $1,000 to make that trade happen, that is a $30 billion opportunity.

Linkedin is barely doing $1 billion this year from that segment and they are the only guys doing this.

There is huge potential in sallet solutions and the other two pale in comparison.

In earlier days, we talked about how linkedin was competing with facebook.

It certainly seems like they have become more differentiated recently.

Yet both of them look for advertising and are trying to attract more ad dollars.

What you think about the facebook push into advertising and whether linkedin can live up to that?

I don't think is a fair comparison.

We go to facebook to learn what our friends are up to.

None of us go to linkedin to learn anything.

We go there because we are getting annoying reminders that somebody wants to be your friend.

There really is no reason for the average person to go to linkedin unless they are looking for a job or they are a sales person looking for a contact.

The number of minutes spent on linkedin is probably 5% of the number of minutes spent on facebook.

It is not close.

We talked about the problem before and some people call it linkedin spam.

Do they have a problem sending people to many messages?

I think they do.

They don't really need me as an intentional -- as a potential employee.

They need me to know they are there and show up when i look for a job.

They need me in the database.

So they can offer my resume to a prospective employer.

They are pressing their luck in trying to drive traffic and that will alienate some users if people quit.

The reason we don't quit is you never know when you'll need a job.

You want your resume and they're just in case.

What about the original content strategy?

It appears to be an attempt to drive traffic.

Ultimately, i think that will work but they've got to get the quality of content to improve dramatically to get us to want to use it.

That just started.

I think that actually has a potential to drive traffic.

Michael pastor, thank you for joining us.

This text has been automatically generated. It may not be 100% accurate.


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