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‘Time for a pause’ on LinkedIn: Analyst

Thursday, 1 Aug 2013 | 1:16 PM ET
'Time for a pause' on LinkedIn: Analyst
Thursday, 1 Aug 2013 | 12:18 PM ET
Shares of LinkedIn might be expensive at these levels, even though the company looks strong, Bob Peck of SunTrust Robinson says.

Shares of LinkedIn might be expensive at these levels, even though the company looks strong, Bob Peck of SunTrust Robinson said Thursday.

"We love the company," he said. "We think they're truly building the professional platform as a service. They have a bunch of new products they're just sort of hitting. They've got their Influencer program, which is creating more of a daily portal. They've got their LinkedIn sponsored updates, which is now finally monetizing mobile. Now they also have Sales Navigator, which is making more of a CRM."

The company, whose shares traded midday around $210 per share, up 3 percent, was expected to release its quarterly earnings report after the stock market close.

(Read more: Stock rally could pause soon: Ed Yardeni)

On CNBC's "Fast Money," Peck added a caveat to his assessment on LinkedIn stock.

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"The big 'but' is valuation. It trades at 40 times EBITDA, 130 times earnings. I get Facebook for 20 times EBITDA," he said. "So, I think a lot of it is priced in right now. I think it's time for a pause."

Peck had a "neutral" rating on LinkedIn stock, with a price target of $215 per share.

(Read more: Facebook stock now 'richly valued': Aswath Damodaran)

Facebook's revenue re-acceleration and incremental margins for the second quarter were two strong arguments in Peck's "buy" rating, he added.

But he wasn't raising his $40 price target on the stock.

(Read more: Facebook stock a 'small buy': Mark Mahaney)

"We want to digest and see how their other products have done," he said. "We'll monitor how the progress is on the new products going forward."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On Aug. 1, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long VRTS; Joe Terranova is long OXY; Joe Terranova is long TRV; Joe Terranova is long EMC; Joe Terranova is long SJM; Joe Terranova is long TRIP; Joe Terranova is long SBUX; Joe Terranova is long URBN; Joe Terranova is long HOS; Joe Terranova is long AXP; Joe Terranova is long MS; Joe Terranova is long PXD; Joe Terranova is long EOG; Joe Terranova is long CXO; Joe Terranova is long LTD; Joe Terranova is long MINI S&P FUTURES; Joe Terranova is long CRUDE OIL FUTURES; Stephen Weiss is long AAMRQ; Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long MOS; Stephen Weiss is short POT; Stephen Weiss is long M; Stephen Weiss is long LCC; Stephen Weiss is long SODA; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Stephanie Link is long TKR; Stephanie Link is long DD; Josh Brown is long AAPL; Josh Brown is long DD; Josh Brown is long VGK; Josh Brown is long CVX.

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