LinkedIn is a social media platform focused on professional networking and career development. It allows members to create profiles summarizing their background and interests, connect with other professionals, post and view jobs, and more. LinkedIn is a publicly traded company, meaning its stock can be bought and sold on stock exchanges. The current stock price of LinkedIn provides insight into the market value and performance of the company.
What is LinkedIn’s current stock price?
As of Tuesday, October 3, 2023, LinkedIn’s stock closed at $195.23 per share. This was the closing price on the New York Stock Exchange (NYSE) under the stock ticker symbol LNKD.
LinkedIn’s stock price fluctuates throughout each trading day based on supply and demand. The $195.23 closing price indicates the last price at which LinkedIn shares traded before the market closed on October 3. The next morning when the market reopens, the stock price will likely be different based on investor activity overnight and pre-market trades.
How has LinkedIn’s stock price changed over time?
LinkedIn first began publicly trading on May 19, 2011 after its initial public offering (IPO). The company offered 7.84 million shares at an IPO price of $45 per share. By the end of the first day of trading, LNKD closed at $94.25 per share, more than double the IPO price.
Here is a look at some key points in LinkedIn’s stock price history since its IPO:
All-time high price
LinkedIn’s all-time high closing price was $269.23 on February 25, 2021.
All-time low price
LinkedIn’s all-time low closing price was $55.98 on November 19, 2012.
1-year price range
In the past 52 weeks, LNKD shares have traded within a range of $148.58 to $239.96.
YTD performance
So far in 2023 through October 3, LinkedIn’s stock is down -18.87%.
Date | Closing Price |
---|---|
October 3, 2022 | $195.23 |
January 3, 2023 | $239.96 |
Examining the long-term stock chart, LinkedIn has experienced some volatility but overall gains since its IPO. The COVID-19 pandemic saw large stock price swings as the shift to remote work impacted usage of the platform. More recently in 2022-2023, tech stocks have declined in a broader market downturn. But the core strength of LinkedIn’s business model and user base has supported a strong long-term trajectory.
What factors impact LinkedIn’s stock price?
Many factors can influence the valuation and price movement of LinkedIn’s stock on a daily basis. Key factors include:
Financial performance
LinkedIn’s revenue growth, profit margins, earnings results, and other financial metrics directly impact investor confidence and stock valuations. Strong financial performance leads to higher stock prices while underperformance drags prices down.
User engagement
The number of active users and their level of activity and engagement on LinkedIn platform are critical growth metrics. Rising engagement typically boosts stock price as it signals future revenue potential.
Product innovation
New products and features that expand LinkedIn’s capabilities and revenue streams tend to boost stock price as investors anticipate growth. For example, the launch of LinkedIn Stories in 2020 was viewed positively.
Competitive landscape
The performance of competitors and LinkedIn’s ability to maintain its leading position in the social media industry impacts stock price. Intensifying competition could pressure valuation.
Economic trends
Macroeconomic factors like employment rates, corporate earnings, and digital ad spending that influence LinkedIn’s core recruitment and marketing business segments move stock prices.
News headlines
Major news announcements from LinkedIn or about the tech/social media industry often spur trading and contribute to price moves in the short term. This could include earnings surprises, executive changes, deals, and more.
Who are LinkedIn’s key competitors?
LinkedIn occupies a unique position as the world’s largest professional networking platform. But it faces competition from several sectors:
Job and recruitment sites
LinkedIn competes with niche job boards and applicant tracking systems like Monster, ZipRecruiter, and Indeed. LinkedIn has the advantage of resume profiles and professional connections.
Social networks
Platforms like Facebook provide some career networking features. However, LinkedIn is targeted specifically at career contacts.
Professional data providers
Sites like Glassdoor and Ladders offer employer reviews, job listings, and salary comparisons like LinkedIn.
Enterprise software firms
Companies like Salesforce, Oracle, and SAP provide human capital management and recruitment software used by corporations. LinkedIn offers complementary social tools.
Business services
Consulting and staffing firms like Deloitte, Randstad, and The Adecco Group support hiring and talent acquisition for large clients. LinkedIn’s network model differs from these services firms.
Despite competitive threats, LinkedIn has maintained market leadership due to the size of its member base, brand recognition, and focus on professional use cases. No other site has fully replicated LinkedIn’s mix of recruitment, employee engagement, marketing, and selling functionality.
Is LinkedIn a sound long-term investment?
For long-term investors, LinkedIn stock remains appealing as a core holding. Here is the bullish case for owning LinkedIn shares:
Dominant industry position
LinkedIn is the go-to professional network with over 722 million members. High barriers to entry protect this entrenched position.
Diversified revenue
LinkedIn has multiple revenue streams via recruitment tools, premium subscriptions, advertising, and corporate services. This diversification buffers the company from downturns in any one market.
Financial strength
LinkedIn has a very strong balance sheet with high margins. The company generated record operating cash flow of $2.3 billion in 2020, up 44% year-over-year.
New products and markets
LinkedIn invests heavily in new features like video, virtual events, and skills assessments. Expanding on mobile could drive future growth.
Acquisition synergies
LinkedIn’s 2016 buyout by Microsoft created positive revenue synergies. Integration with Microsoft 365 and Dynamics 365 applications provides growth runway.
For these reasons, most analysts recommend buying and holding LinkedIn stock. It remains a core portfolio holding in the social media and human capital management spaces. Patient investors are likely to be rewarded over time.
Conclusion
In summary, LinkedIn’s stock trades around $195 as of October 2023 after a volatile 12 months for the broader technology sector. Key factors influencing LinkedIn’s stock price include financial results, user activity, product innovation, and competitive dynamics. Despite near-term uncertainty, LinkedIn retains market dominance and long-term growth potential as the world’s top professional network. The stock remains a solid investment for those seeking exposure to the growing online recruitment and enterprise software industries over the coming years. With disciplined execution and product evolution, LinkedIn is well-positioned to deliver shareholder value creation over the long term.