LinkedIn shares dive on weak forecast

February 5, 2016
LinkedIn shares plunged more than 40 percent after a weak outlook from the career-focused social network fueled fears of a slowd
LinkedIn shares plunged more than 40 percent after a weak outlook from the career-focused social network fueled fears of a slowdown

LinkedIn shares plunged more than 40 percent on Friday after a weak outlook from the career-focused social network fueled fears of a slowdown.

The shares dived 43.6 percent to close at $108.38, its lowest since late 2012.

LinkedIn reported a loss of $166 million for 2015, far wider than the $16 million deficit for 2014.

But investors were unsettled by the weak of revenues well below the $3.9 billion expected.

The outlook "implies material deceleration in growth, which removes support for the company's historically premium valuation," said Mark Mahaney at RBC Capital Markets in a research note.

Barclays analyst Paul Vogel said he was not surprised by the sharp reaction in LinkedIn stock.

"It is definitely a lot harder not to wonder if the company is starting to hit saturation levels with certain users or enterprises," he said in a note to clients.

LinkedIn claimed 414 million users in December, up by 18 million from the previous quarter and 67 million over the past year.

Explore further: LinkedIn posts solid 4Q, but outlook disappoints

Related Stories

LinkedIn posts solid 4Q, but outlook disappoints

February 6, 2014

LinkedIn finished last year with a solid financial performance, but the online professional networking service spooked investors with a forecast indicating that its growth is starting to slow down.

LinkedIn posts 1Q loss as expenses rise

May 1, 2014

LinkedIn suffered a first-quarter loss as the online professional networking service ramped up its investments in projects aimed at attracting more users on the lookout for better jobs and career advice.

Recommended for you

Inferring urban travel patterns from cellphone data

August 29, 2016

In making decisions about infrastructure development and resource allocation, city planners rely on models of how people move through their cities, on foot, in cars, and on public transportation. Those models are largely ...

How machine learning can help with voice disorders

August 29, 2016

There's no human instinct more basic than speech, and yet, for many people, talking can be taxing. 1 in 14 working-age Americans suffer from voice disorders that are often associated with abnormal vocal behaviors - some of ...

Sponge creates steam using ambient sunlight

August 22, 2016

How do you boil water? Eschewing the traditional kettle and flame, MIT engineers have invented a bubble-wrapped, sponge-like device that soaks up natural sunlight and heats water to boiling temperatures, generating steam ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.