LinkedIn (LNKD) stock hit a 52-week low on Monday, hitting as low as $56.45 and closing at $60.00. The price has been sliding for the past month in light of rumors of a Facebook IPO, insiders cashing out at the end of the lock-up period and mixed opinions from analysts. Today’s Forbes blog post, LinkedIn Would Be Fairly Valued at $43, just added fuel to the fire, triggering highly volatile trading on Monday.
At the same time as the analysts are calling LNKD “rich”, they’re also upbeat about LinkedIn’s future, citing their 60% year-over-year growth, still-high unemployment and LinkedIn’s focus on bringing in more paying small business customers. Forbes/Trefis offers some additional explanation about how LinkedIn benefits from a weaker economy and unemployment:
Despite the persisting unemployment rate of around 9%, there are still 3.4 million jobs available as of September 2011, according to Bureau of Labor Statistics.
This situation favors LinkedIn, which offers a unique platform for professional networking where employers and potential employees can interact and communicate. The company also saw increased visibility when it hosted President Obama’s ambitious $447 billion Jobs Act back in September.