LinkedIn shares drop on languid revenue forecast
LinkedIn shares drop on languid revenue forecast
LinkedIn saw its shares get hit, then rebound, Thursday after the professional networking site continued a trend of strong results and a disappointing forecast.
The network’s third-quarter results topped Wall Street expectations with sales of $568 million and earnings of 52 cents. Analysts expected sales of $557.5 million and earnings per share of 47 cents, according to Thomson Reuters.
But LinkedIn’s LNKD fourth-quarter forecast of revenue ranging from $600 million to $605 million did not sit well with traders. The pattern of slowing growth in social media stocks is a familiar theme this week.
Shares of Twitter (TWTR), which reported slowing user growth on Monday, dropped 16% this week. And Facebook (FB) shares have fallen 8% from Monday’s opening price after the company warned Tuesday of increasing costs and slowing revenue.
There was some good news. LinkedIn raised its full-year revenue by $33 million to $2.17 billion to $2.18 billion, which was higher than what analysts had expected.
LinkedIn shares closed up 1.7% Thursday at $202.90, then abruptly fell upon its earnings announcement — before trending up again.
Source: Usatoday-LinkedIn shares drop on languid revenue forecast
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