LNKD Stock.

[legendawe]

If anyone has been following LNKD today after the report. Can anyone explain to me some reason why it fell so hard following the report. It was up and then was down. I really would apreshate a reason to explain why.

 

[AllDayHolds]

This is typical for stocks that beat on the earning numbers to head up right away... The reason for sharp turns can be many, but mostly it is due to the conference call and guidance that is unforeseen while the original numbers are first coming out.

 

[Vinayak1000]

LinkedIn has really tumbled over the last week, dropping 50%. This was a fascinating thing given the fact that shares dropped 50%. Also, take into account that the company exceed analyst expectations for 2015.
One point of note is that LinkedIn's user base is growing rapidly. Over the last 5 years, the user base grew by 460%. There are now 414 million users after the figure stood at 90 million users just five years ago. It has grown fast than Facebook and Twitter over the past five-year period. This is truly remarkable given that it is mostly used for business.
One very important stat is that 41% of the LinkedIn users have an income that exceeds $75,000. Almost half of the upper middle class use LinkedIn. This translates to bigger revenues as this type of base is more likely to spend on the premium services where LinkedIn makes the bulk of its money.
Social professional networks are becoming the top source to get quality hires. Countries with high usage of social professional networks are the U.S., Canada, Spain, Brazil and Mexico.
The recruiting industry is likely to be evolve a lot in the future as these social professional networks match workers to jobs better.

 

[DrDulya]

The report shocked Wall Street strong fall in revenues, which were significantly worse than expected. The shares dropped to a three-year low of $124.51 from the start of trading. This is a dramatic reduction in the price since IPO in 2011. At least seven brokerages have reduced the recommendation on the shares from BUY to HOLD. With low growth profile, I believe that LinkedIn should not count on a slight increase in revenue and audience. Also on the target share price forecast was reduced from $258 to $150. Also lowered their forecasts such large brokerage firms: Raymond James, Cowen and Co, BMO Capital Markets, J.P.Morgan Securities and RBC Capital Markets.
LinkedIn forecasts for the current year revenue of $3.60-$3.65 billion., which is less than forecasts of analysts in a Thomson Reuters $3.91 billion. This fact means that LinkedIn will grow by about 15% in 2017 and 10% in 2018.
Besides slowing LinkedIn audience growth also decreased the growth of revenues from advertising on the site. Revenues grew by only 20% in 2015 while in 2014 the growth was 56%.
In recent months, LinkedIn has spent a lot of funds for the expansion of purchases by companies hiring for sales outside the USA. But now faced with the pressure in Europe, the Middle East, Africa and the Asia-Pacific region from the challenges of the global economy.