LinkedIn shares drop 43% as weak forecast spooks investors

[MowCowWhoHow III]

Source: The Guardian

LinkedIn Corp’s shares plunged as much as 43% on Friday, wiping out nearly $11bn of market value, after the social network for professionals shocked Wall Street with a revenue forecast that fell far short of expectations.

The stock sank to a three-year low of $110.01 in early trading, registering its sharpest decline since the company’s high-profile public listing in 2011. At least seven brokerages downgraded the stock from “buy” to “hold” or their equivalents, saying the company’s lofty valuation was no longer justified.

“With a lower growth profile, we believe that LinkedIn should not enjoy the premium multiple it has grown accustomed to,” Mizuho Securities USA Inc analysts wrote in a note.

Mizuho downgraded the stock to “neutral” and slashed its target price to $150 from $258. Raymond James, Cowen and Co, BMO Capital Markets, JP Morgan Securities, RBC Capital Markets and Suntrust Robinson also downgraded the stock. At least 22 brokerages cut their price targets on the stock, with RBC slashing its target by almost half to $156.

Read more: http://www.theguardian.com/technology/2016/feb/05/linkedin-shares-drop-three-year-low-investors

[eggplant]

1. Not even a litle surprised.

LI has been screwing over its members for months now, removing the actually useful networking features from its Groups (their key networking tool), and refusing to deal with outraged group owners and managers. They have effectively killed the feature off, although they have been slowly (like watching paint dry slowly) putting back one or two key things that people are screaming about.

I don't expect them to be able to come back from this. It will be interesting to see who steps in to replace them.

[onehandle]

2. LinkedIn sucks. nt