LinkedIn (Nasdaq:LNKD) is about to release earnings. Ponder this Bear Case Scenario as you listen to management comments:
Heavy investments in activities unrelated to professional networking and career search may be unsuccessful and generate unacceptable returns on capital. Loss leader rationale is not holding up.
The operating model is very unknown and still has to prove itself.
While LinkedIn is the largest professional social network, a key competitor Viadeo has more users in high-growth countries such as China.
George Gutowski writes from a caveat emptor perspective.