LNKD - LinkedIn Corporation

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If you've been following how this earnings season has been shaping up for social network companies, it's this: Market hates momentum driven tech stocks, you might just be spared if you post great user growth, but will punish you otherwise - revenue/earnings growth be damned.  

Lo and Behold, LinkedIn reported strong revenue growth, offset by tepid monthly active user (MAU) growth.

Market reacted quickly as the stock sold-off 3% even before the earnings call barely started.  Expect the stock to sell-off closer to 5% before the market opens tomorrow.

The results weren't surprising given that most of the recent efforts at the company was targeting monetization improvements such as sponsored contents and marketing solutions products.  Relatively poor user engagement has always been a sore spot for LNKD and recent enhancements in access to published content is too little to drive the needle for 1Q results.  member growth was 36% compared to 37% in 4Q13.  If what happened to TWTR and other social networks after reporting weakening user growth is any lesson, we expect the blade to fall on LNKD hard post earnings.  


Missing Image

She probably did more for LNKD user engagement than the newly opened up published content feature.

Source: BusinessInsider.com / Linkedin.com

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LNKD: Stock has been a relative dud vs. FB over the past year. The two stocks have been diverging since Sep 2013. China catalyst is overated.

WaveTrader | almost 2 years ago.

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