Linkedin stock falls driver#
Linkedin stock falls series#

Over the long-term, LinkedIn's young education business, which includes Lynda, the online video tutorial site LinkedIn bought last year, could also be a meaningful source of revenue and user engagement. Only about a third of Lynda subscriptions are currently purchased by businesses. MSFT : 320.99 (+0.83) LNKD : 195.96 (+0.01) Amazon to close Kindle bookstore in China, halt device sale Associated Press - Thu Jun 2, 2022. Sordello said the company plans to revamp its desktop experience this year. Sordello said that in December, searches and messaging accelerated on the app. Sordello reiterated comments LinkedIn made on its earnings call with investors last week that the rollout of LinkedIn's new flagship app late last year is already boosting user activity. However, the company's biggest opportunity to date is in sponsored updates, LinkedIn's form of native advertising, which is the company's fastest growing monetized product ever, he said. Monster, the other publicly held careers publisher, reports its first quarter results May 7th.Sordello noted that despite the stock's tumble, LinkedIn's fourth quarter was 'pretty solid.' The company's core hiring business, known as talent solutions, is stable. The stock closed Tuesday at $8.87, then plunged as low as $7.50 following the financial report Wednesday. The stock price took a sharp dive Wednesday, after the company forecast revenues in Q2 would come in between $64 million and $65.5 million, below the $67.2 Wall Street estimate. Per share earnings were in line with Wall Street’s expectations, but revenues came in somewhat below analysts’ forecast. Decelerating growth in this segment could spell trouble in the quarters to come.”Ĭareers site publisher DHI Group (formerly Dice Holdings), yesterday reported it earned 9 cents a share on revenues for the quarter of $63.8 million. In reporting on the results, financial site The Motley Fool, said, “Investors should keep a close eye on growth in the Talent Solutions business, which offers tools for recruiters and as such is LinkedIn’s principal earnings driver, accounting for 62 percent of revenue. Scaling back an earlier estimate was a first. LinkedIn has a history of making conservative revenue predictions, then handily beating them when the numbers come in. And slowing display ad sales is also taking a small toll. A $50 million foreign exchange hit is expected due to the strong U.S. That lead to higher than usual churn among customers and lower upsells. That’s $80 million less than analysts’ estimates.ĭuring an investor conference call today, company officials cited several reasons for scaling back expectations, including a large sales team transition that shuffled clients to new sales reps.

Today, the company forecast revenue to be about $2.9 billion. Analysts were expecting $717.5 million.Ī second hit came from scaling back the initial full-year estimate, which officials previously predicted would fall between $2.93 billion and $2.95 billion. The company’s Q2 forecast estimated revenue between $670 million and $675 million.

Linkedin stock falls driver#

However, the primary driver behind the stock price drop was the sharp difference between what analysts are expecting in revenue this quarter and what LinkedIn said it expected to bring in. Mobile users now account for half of all unique member visits. One important measure, the percentage of “mobile unique visiting members,” was 38 percent, almost half the growth of Q1 last year. Other metrics, less influenced by the law of large numbers, also showed smaller increases.

Likewise, each of its segments - talent, marketing, and premium subscriptions - saw similar slower growth. Revenue for the first quarter came in at $637.9 million, also better than expected.īy percentage increase, revenue grew at the slowest rate in four years, 35 percent over the same quarter last year. (Including stock-based compensation and other items typically excluded by analysts, LinkedIn lost 34 cents a share.) It was after the New York markets closed that LinkedIn announced it earned 57 cents a share, a penny more than Wall Street’s consensus forecast. LinkedIn got hammered today after it scaled back its financial outlook and reported the slowest quarterly growth since it went public in 2011.ĭespite another record setting revenue quarter, investors dumped shares in after-hours trading, sending the stock down by as much as 25 percent or more than $50 a share.

Linkedin stock falls series#

This article is part of a series called Financial.