On the conference call with analysts, LinkedIn said it would be doubling its capital expenses in the second quarter, which will impact its earnings in the second quarter.
“We expect second-quarter capex spend to be roughly double from the first quarter and then moderate in the second half of the year,” said Sordello. Part of the company’s spending plans include building out its own data center. “This will allow us to scale over the long term,” he said, adding that while it will increase operating expenses in the short term, it will result in long term savings.
The company is also hiring more in the current quarter. In April, it already had hired 220 new staffers, compared with 320 for the entire first quarter.
When you start needing to send linkedin sales people, like copier salesmen, onto the street...the end is near! Those bodies are going to cost a LOT of money, similar to Groupon! Let's face it - this company is 10 years old and going nowhere. Not to say it has no value - it may end up being worth what Monster is (500 million), etc.
But this run-up is because people do not understand Social Media...or, the lack of it! It's a bubble
You remind me of the story of the reporter who wrote a numbingly long piece bemoaning the fact that the incarceration rate was so high even though the crime rate had fallen. His ideology (don't lock people up) blinded him to cause and effect. LNKD is spending because business is booming.