SANTA MONICA: LinkedIn Corp’s booming hiring business and rapid international expansion will be the main growth drivers for the next few quarters, analysts said after the corporate networking site’s revenue and profit forecast smashed expectations.

LinkedIn’s shares rose 8 per cent to $194.90 in early trading after the company also reported a 47pc jump in second-quarter revenue on Thursday.

At least 14 brokerages raised their price targets on the stock, by as much as $30 to a high of $300.

Revenue in the company’s hiring business, called Talent Solutions, jumped 49pc, assuaging concerns of market saturation that surfaced after LinkedIn forecast 2014 revenue below analysts’ expectations in May.

“LinkedIn’s current roster of a little over 28,000 corporate solutions clients implies a minority penetration rate for Talent Solutions on a global base of about 745,000 addressable businesses that have more than 100 employees,” Credit Suisse analysts wrote in a client note.

Credit Suisse maintained its “outperform” rating on the stock.

LinkedIn’s membership jumped by a third to 313 million in the quarter ended June 30.

The company, looking to replicate its success in the United States internationally, launched a Chinese language “beta” version of its main website in February to expand in the world’s largest internet market by users.

“Two-thirds of members are international and this cohort is growing rapidly, propelled by the launch of the simplified Chinese site (in) February, and has become the fastest growing market to date,” Cowen & Co analysts wrote in a client note.

Cowen maintained its “market perform” rating and raised its price target on the stock to $195 from $175.

Of the 36 analysts covering the stock, 24 have a “buy” or a higher rating and 12 have a “hold”, according to StarMine data on Friday. There are no sell ratings on the stock. Up to Thursday’s close of $180.64, LinkedIn’s shares had gained about 12pc in the last three months.—Reuters

Apple closes acquisition of Beats music

SAN FRANCISCO: Apple said on Friday it closed its $3 billion deal for Beats, the high-end audio equipment and streaming music service, a tie-up that could allow the iPhone maker to reach new audiences.

“Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family,” Apple said on its website.

“Music has always held a special place in our hearts, and we’re thrilled to join forces with a group of people who love it as much as we do. Beats cofounders Jimmy Iovine and Dr Dre have created beautiful products that have helped millions of people deepen their connection to music.”

Apple offered no indication of any new products or services it may offer with Beats, but speculation has swirled around the possibility of new wearable tech that may be on the horizon.

Apple’s biggest-ever acquisition also brings onboard the talent of Beats brains Dr Dre, a rap musician, and Iovine.

Iovine, a producer for U2, Dire Straits, Stevie Nicks, Tom Petty and The Heartbreakers, and Patti Smith, is seen by some as a visionary for recognising the trend toward online streaming and subscriptions, and away from Apple’s model of purchasing individual songs on the Internet.—AFP

Fiat gets green light for global reorganisation

TURIN: Fiat shareholders on Friday approved the reorganisation of the Italian carmaker’s business that will see its headquarters move to the Netherlands before it launches on Wall Street later this year.

The changes will also see the new company renamed Fiat Chrysler Automobiles, after its merger with US automobile group Chrysler, and be domiciled in Britain.

“The future of our company begins with the meeting today,” said Fiat president John Elkann, before the vote in the carmaker’s historic headquarters in Turin.

The move turns a page in Fabbrica Italiana Automobili Torino’s 115-year history and will transform the Italian carmaker into the world’s seventh-largest automobile giant.

That would be a sharp turnaround from a decade ago, when Fiat was on the verge of bankruptcy and more than 90 per cent of its revenue came from Europe.

“There were so many beautiful memories. I wish you good luck, with tears in my eyes,” one woman told the meeting.

Chief executive Sergio Marchionne said the merger “signals after 115 years the end of a long, historic cycle,” but also opens “a new future... with strong and concrete prospects”.

But not all shareholders were behind the deal, with some labelling it as “not credible”.

The new group is slated to list on the New York Stock Exchange in the first half of October.—AFP

Published in Dawn, August 2nd , 2014