Time to unfriend Facebook and join LinkedIn?

As Facebook’s market value continues to drop, LinkedIn may be a smart alternative for investors.

Read: Zuckerberg off index

Facebook’s stock listing declined to US$28.84 today, while LinkedIn’s has risen to US$99.94, reports the Globe and Mail.

Both social media sites allow users to keep tabs on and interact with friends and colleagues, but that’s where the similarities end.

LinkedIn’s revenue is growing, more than doubling over the last year, and analysts expect it to jump another 60% in the next 12 months. This is because it offers what Facebook doesn’t: job postings and (although still low) paid subscriptions. Also, its user base still has room to grow.

By comparison, analysts predict Facebook’s revenue will rise just 33% in the next 12 months.

“What I really like about LinkedIn’s model is there’s an element of counter-cyclicality,” says Tom Forte, analyst at Telsey Advisory Group in New York. “When times are bad, there are going to be more people looking for work.”

Read: As Facebook falls flat, LinkedIn adds friends

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.