With all the tape on our Social Network darlings lately, meaning LinkedIn (LNKD), Facebook (FB), Zynga (ZNGA), Groupon (GRPN), Angie’s List (ANGI), and Pandora (P), we thought this would be a good time to take a quick look at their performance since they reached their 52-week highs.
So we all thought that it was easier to ignore LinkedIn when the main street and Wall Street darling Facebook completed its IPO. To put it lightly, it’s been tough for Facebook! There is better news out there in LinkedIn, which reported better than expected numbers last week pushing the stock up from $93.51 to $111.55. Although slightly lower than its 52-week high of $120.63, performance has been stellar in front of Zynga (down 80%), Pandora (down 35%), Angie’s list (down 30%), and Groupon (down 60%).
We wanted to give our insight on a few ways to evaluate the Social Network darlings. Although the understanding of the business and the financials is complicated and time consuming, we thought this would be a good place to start:
1. How relevant is their content and how likely are customers to continue to use the content and share the content?
2. What is the availability of unrestricted cash on the balance sheet?
3. What does the company’s cash flow look like in the next 3-5 years?
4. How do profit margins fluctuate with capital spending down the road?
5. What is the company’s long-term business plan?
Compare average analyst ratings for the companies listed below using Kapitall’s Compar-O-Matic.
Use the Turbo Chart to Compare the EPS and Price Performance for the 3 Favorites
Written by Sabina Bhatia