5/17/2023 0 Comments Linkedin stock expectationsLinkedIn finished today at $161.22, up $7.75 a share, or about 5 percent. Even though it beat sales estimates for the sixth straight quarter, the company's shares were down more than 3 percent in after-hours trading on Thursday. LinkedIn announced at the same time that it had agreed to purchase job site Bright for $120 million in cash and stock.Īnd like several other high-flying Internet stocks, LinkedIn has been a victim of the recent market turbulence. In part, the decline reflected uncertainty around its transition to native advertisements and the costs associated around that. In the three months since LinkedIn's fourth quarter, the company's stock has lost around 29 percent of its value. "We made significant progress against several key strategic priorities, such as international expansion via China, professional publishing, and the shift to content marketing." "Q1 was a strong quarter for LinkedIn across both member engagement and financial results," CEO Jeff Weiner said during a conference call. Analysts expected $466.57 million in revenue and adjusted earnings per share of 34 cents. The results slightly beat Wall Street's estimates. It lost $13.4 million for the period, but earnings per share on an adjusted basis were 38 cents. Even though LinkedIn raised its full-year sales guidance from an earlier forecast, the company's $2.06 billion to $2.08 billion estimate still came in shy of analysts' $2.11 billion target.įor the quarter ended March 31, LinkedIn posted revenue of $473.2 million, up 46 percent from the year-ago quarter. The company spooked investors with a revenue forecast of $500 million to $505 million in the current quarter, compared with the average Wall Street forecast of $505.1 million. The company first sold shares to the public in May, 2011, when the stock more than doubled to $94 after pricing at $45.Linked posted slightly better sales and earnings in the first quarter but the professional social network's shares still fell in after-hours trading after a revenue forecast that disappointed expectations. The company's stock is now trading near levels that it hasn't hit since November, 2012. LinkedIn had been flagging for much of the last year, falling about 17% in the 12 months running up to yesterday's earning report, while the Nasdaq had fallen over 4% and the S&P 500 had fallen 3%. "We were wrong - we hope to do better in the future," he wrote in a note this morning downgrading his rating for the company from Buy to Neutral.Īs for why the shares dropped so much in after-hours trading and again today, Peck wrote "the weakness in the shares is related to not only the magnitude of miss but also lack of a concrete catalyst to point to in 2016 in a difficult tape and macro backdrop." One analyst, Robert Peck of SunTrust Robinson Humphrey, apologized for not appreciating how far the stock could fall in response to poor guidance from the company. "While the magnitude of the current guidance deceleration gives us pause, we believe it is possible management is executing a similar playbook to prior years," the analysts wrote.
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