The gig economy is large and growing rapidly. In 2019 it generated $250 billion worth of transactions according to research from MasterCard, and is expected to reach $455 billion by 2023. More than 60 million US workers now participate in the gig economy in some way, with the pandemic creating more white-collar freelance jobs as people and businesses embraced remote work.
Gig economy total transaction volume (USD billions)
LinkedIn has a number of revenue streams. Aside from advertising, it sells premium subscriptions for job seekers and salespeople as well as services for recruiters and HR personnel. We also see potential for it to expand its education and training services into new verticals and to unlock value by facilitating B2B connections.
While LinkedIn generated $8 billion in sales last year it was Microsoft’s sixth largest segment overall behind larger businesses such as the cloud, productivity suite and gaming which are performing exceedingly well. LinkedIn is often overlooked in assessing the company’s value and is underappreciated by the market.
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The Education of a Value Investor by Guy Spier
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