LinkedIn Valued at Five Times What Monster.com Is Worth

May 20, 2011


LinkedIn, the world’s leading professional networking site, went public yesterday in an initial public offering which reminded many of the irrationally exuberant IPO’s of the late 1990’s. Pet food by mail, anyone?

A number of people yesterday posted comments in various forums in which they essentially said let’s give LinkedIn’s stock 90 days to settle down and then see where it is trading. I totally agree.

LinkedIn can be a great tool in the hands of a good recruiter but that’s a completely separate issue from whether its stock is a good value at $32 let alone $122. Like Jonathan Duarte posted at ERE, I’m a big fan of LinkedIn even though I’m one of the owners of CollegeRecruiter.com job board.

And I agree with John Zappe, the author of the ERE article, that job boards like ours tend to attract job seekers who are more active than the more passive folks who tend to use social media sites such as LinkedIn. Of course, recruiters who want to fill positions today are often frustrated by the lack of response they receive from passive job seekers but those recruiters tend to believe a little too strongly in the attractiveness of the opportunities they have to offer. Their opportunities first need to convert the passive to active and then get that active to take action. That’s a lot harder than it sounds and, hence, why LinkedIn provides much better value to the good recruiter than the one who posts and prays.

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