LinkedIn (NASDAQ:LNKD) has upgraded its profile recommendations feature, which could potentially drive higher user engagement levels on the website. LinkedIn has had a “People You May Know” feature since months, which suggests similar profiles which users can connect with. It has upgraded it now with a new personalized recommendation algorithm, which suggests possible connections based on the user’s existing network, past educational and work information. 
It has also added a couple of other features, which enable users to connect to all recommendations at once and select profiles more easily, which could lead to increased engagement levels on the portal, and also drive other usage metrics like page views which would directly impact its advertising revenue. Using the data and feedback generated by the recommendation tool, LinkedIn could also possibly improve its job targeting algorithm, which could help it refine its recruitment offerings — a major revenue engine for the company.
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LinkedIn competes in the online job search market with Monster (NYSE:MWW), and also in the social networking space with giants like Facebook and Google+ (NASDAQ:GOOG). Recruitment services account for nearly 45% of its value, while advertising contributes to around 30%. We currently have a $39 Trefis price estimate for LinkedIn, which stands 60% below its market price.Notes: