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Reuters/Bloomberg
In a giant’s shadow: LinkedIn and Twitter

In many digital markets, the winner takes all. Uber, for example, is worth more than all other “sharing economy” companies combined. And among Western social networks, there’s essentially Facebook and a bunch of also-rans—a disparity highlighted by quarterly results this week. On Wednesday Facebook announced solid growth in both advertising revenue and users. Twitter, on Tuesday, showed unexpectedly strong ad revenue but weakening user growth. And yesterday LinkedIn reported healthy growth in “talent solutions” (ie, tools for corporate recruiters), its main revenue source, and membership; but the number of members visiting monthly was flat, quarter-on-quarter. What can the also-rans do? Twitter’s founder and interim boss, Jack Dorsey, apparently pitching for the permanent job, stresses reinventing the product rather than chasing revenue. LinkedIn is diversifying: it has bought Lynda.com, an online learning service. Having previously made efforts to imitate Facebook, both are now trying to get out of its shadow.

Jul 31st 2015
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