Linkedin: Could lead the game!

Linkedin (LNKD) generated $243 million revenue in 2010 with market capitalization as high as $8 billion. Its trailing P/E ratio was a high 477. Because social networking sites are relatively new and hard to value. Facebook's popularity seemed to convince investors that Linkedin will follow the same path. There are many new social networking startup companies to try entering this market. 

Analysts estimated next year's growth of 1,066.7% for Linkedin compared to industry growth rate of 26.10% and S&P of 14.80%.


Low interest rates enable many startup companies to enter into the market. A few leaders are expected to remain and lead the game.