Social Media’s Have-Nots: LinkedIn
Social Media’s Have-Nots: LinkedIn (Reuters)
In its most recent earnings report, social media jobs site LinkedIn Corp (LNKD) shared that its Q1 earnings came in above consensus estimates, that it would adjust its Q2 revenue forecast and, most importantly, that it already has raised its sales forecast for 2014 from $2.06 billion to $2.08 billion. Unfortunately, even that more optimistic forecast still comes in below Wall Street’s consensus estimate of $2.11 billion. So you can probably guess what happened in the market after that report emerged: shares were already down 2.7 percent to $156.88 in early trading this morning. It appears investors already have decided that LNKD is the next-up social media company that will wilt under its own expectations. And the Street — what does it think? Well, Pacific Crest Securities analyst Evan Wilson cut his price target on the stock to $220 from $275, and he wasn’t alone. What about you? What do you think?