LinkedIn's Dataset May Give Microsoft An Edge Over Google & Amazon

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In a report issued Thursday, Pacific Crest analysts led by Evan Wilson tried to explain the value of the core business of the recently acquired LinkedIn Corp LNKD to Microsoft Corporation MSFT, especially given their conception that the company’s “longer-term goals are not well understood.”

The analysts think that, if Microsoft succeeds in its long-term objectives, the data set LinkedIn is trying to create (which includes economic data for people, jobs, companies, skills, etc.) should create plenty of value for the company.

The analysts pointed out three key investment points.

The LinkedIn acquisition looks like a data play, seeking to combine the professional networking site’s database with Microsoft Graph, as a move that provides an edge over competitors like Alphabet Inc GOOGL GOOG or Amazon.com, Inc. AMZN.

“The economic graph that LinkedIn is building has significant overlap on the professionals and businesses on which Microsoft is focused and adding it will only strengthen Microsoft’s position in the market,” the report said.

LinkedIn’s data goes well beyond member profiles.

LinkedIn is making considerable “progress with Six Pillars to grow its non-member data set.”

Pacific Crest maintains a Sector Weight rating on shares of LinkedIn.

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Posted In: Analyst ColorLong IdeasReiterationAnalyst RatingsTechTrading IdeasEvan WilsonPacific Crest
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