12/26/2023 0 Comments Linkedin stock crash interview![]() LinkedIn's stock rose nearly 190% between its May 2011 IPO and its all-time high of $269 February last year, when shares started slipping. LinkedIn's stock has fallen more than 51% this year to $107.02 at 2:49 p.m. factor is material, it could be hard to see a material re-rating for LinkedIn shares," Mahaney said. Revenue growth in Talent Solutions slowed to 45% in the fourth quarter from 46% in the third quarter. LinkedIn said it currently has 42,000 corporate customers, but said it will stop offering this metric in future earnings reports. RBC Capital Markets analyst Mark Mahaney warned in a note on Friday that LinkedIn's core business, its hiring business known as Talent Solutions, is maturing and could inhibit LinkedIn's rebound. "We’ve been investing in making it easier for people to use our self-service tools, and that’s an area of opportunity," LinkedIn's CEO Jeff Weiner said on Thursday's call. LinkedIn said it sees self-service ad products as an area of high growth potential. Despite the struggles of this unit, it does contain LinkedIn's fastest growing monetized product, sponsored updates, LinkedIn's version of native advertising. LinkedIn's marketing solutions business, which sells native advertisements, saw a bigger drop in revenue growth than any other segment of LinkedIn's business, falling from growth of 28% in the third quarter to 20% in the fourth quarter, in part because of the decline of display advertising. Any negativity has led to, in most cases, overreaction." "Stocks that don’t produce results that are stellar are going to get hit and get hit really bad. "We’re dealing with a market that’s unforgiving and unrelenting," Anthony said. He noted, however, that in today's markets, even earnings and forecasts that miss Street estimates by a relatively small amount can dramatically hurt a stock. ![]() Victor Anthony, an analyst at Axiom Capital Management, saw macroeconomic weakness as the most important factor. But when it comes to parsing why investors turned on the company so dramatically, or what it will take for LinkedIn to get out of the penalty box, analysts are divided. It's now clear that LinkedIn faces a much tougher road ahead. New products weren't baked in: LinkedIn's new "Recruiter" and "Referrals" enterprise products, which are rolling out this year, weren't factored into LinkedIn's 2016 forecast and could offer a meaningful boost to revenue. ![]() I mpact from foreign currencies: LinkedIn said currency movements are expected to lower the company's growth by 2% in 2016.ĥ. Those products, such as "Recruiter Lite" or "Premium Subscriptions," weighed on LinkedIn's 2016 guidance, Sordello said.Ĥ. A slowdown in "online sales": LinkedIn's total revenue growth was 34% in the fourth quarter, down from 37% in the third quarter. LinkedIn's CFO Steve Sordello on Thursday put the blame in part on "online sales," or products that customers purchase on LinkedIn without any interaction with a sales representative. LinkedIn said it expects the move to reduce revenue by $50 million this year but will allow the company to direct resources to better performing products.ģ. ![]() The shutdown of "Lead Accelerator": LinkedIn is shutting down part of its business-to-business marketing service, called "Lead Accelerator," a product that LinkedIn formed after its acquisition of business marketing firm Bizo. At the end of last year, field sales revenue growth was about 30%.Ģ. The company said this weakness could cause revenue growth in field sales (sales which are made via LinkedIn's sales team), to fall to mid-20%. Why did LinkedIn's upward trajectory suddenly changed, and why was Wall Street's reaction so negative? Here are five factors:ġ.Macroeconomic weakness: On a call with analysts and investors, LinkedIn said economic slowdown in Europe, the Middle East, Asia and Africa isn't expected to be massive, but will dampen sales.
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