LinkedIn shares plummet more than 20% on weak outlook

LinkedIn reported revenue rose 34 per cent year-on-year to $862m in the fourth quarter, beating analysts estimates for $858m.

Stock Reaction: Shares of LinkedIn have fallen 24% in the past three months compared with the S&P 500’s decline of 10%. 8,576,920 shares of the company were exchanged. The company’s 50-day moving average is $211.27 and its 200 day moving average is $211.31. The company has a market cap of $25,070 M and the number of outstanding shares has been calculated to be 13,10,86,465 shares. Further, it offers marketing solutions, including enterprise solutions to target larger advertisers who receive dedicated account management and additional marketing solutions; sponsored updates that enable advertisers to share and amplify content marketing messages; and LinkedIn Ads, a self-service platform that enables advertisers to build and target their advertisement to its members based on information in their profile.

LinkedIn Corp. forecast first-quarter and full year revenue that fell short of estimates amid a slowdown in sales of display advertising and services for marketers. Revenue is expected to be about $820 million, while Wall Street was anticipating $866.86 million.

The current quarter EPS consensus estimate is. Non-GAAP diluted EPS was $2.84 in 2015 compared to $2.02 in 2014. They noted that the move was a valuation call. Separately, on January 21, Suntrust Robinson Humphrey’s Robert Peck maintained a Buy rating on the stock and has a price target of $250. Nomura started coverage on LinkedIn Corp in a report on Friday, December 4th. The company disclosed that its core app along with its job seeker service resulted in a material increase in jobs engagement on LinkedIn from “approximately 30 percent year-over-year growth last January to over 80 percent growth today”. The stock advanced less than 1 per cent to US$192.28 at the close in NY, leaving them down 15 per cent this year. Seven research analysts have rated the stock with a hold rating, thirty-two have issued a buy rating and two have assigned a strong buy rating to the company’s stock.

At the present moment, LinkedIn has three revenue streams. Following the transaction, the chief accounting officer now owns 8,678 shares of the company’s stock, valued at approximately $2,097,299.04. On Jan 20, 2016, Michael Gamson (SVP, Global Solutions) sold 4,722 shares at $195.23 per share price. Following the transaction, the senior vice president now directly owns 40,086 shares in the company, valued at approximately $7,819,976.88.