Dan Nathan, co-founder and editor of RiskReversal.com, said expectations were not particularly high for LinkedIn (LNKD), and that it came in line with guidance should be troubling for the sector. The stock is down 45% from the all-time high. It's been crashing since last September and "we need to watch some levels" on the downside.
Yelp (YELP) was enough to cause a mini-rally. Did this mean something? It's sold off enough and the quarter was decent enough where there could be a move up to $67.50 or $68. It didn't quite get there but there should be some upside there based on volume, he added.
Jon Najarian, co-founder of optionMONSTER and tradeMONSTER, said he likes LinkedIn after the correction. He believes the numbers were strong across the board despite the weak guidance. Membership exceeded expectations and expansion in China is a plus.
Nathan said that he can't imagine LinkedIn rallying any time soon if it didn't go up on Thursday.
Canaccord Ingenuity Managing Director Michael Graham agreed with the idea that it was a solid quarter for LinkedIn. The core business, talent solutions, grew 50%. Customers grew 42% on the revenue.
Karen Finerman, president of Metropolitan Capital Advisors, asked about the $250 target and how LinkedIn gets there. Graham sees that value in its long runway for growth. With over 300 million members, there's no company that can develop a rival asset like that. The safety net around that growth trajectory is good.
The panel moved on to two major succession plans announced Thursday. Ford (F) announced that Mark Fields would succeed CEO Alan Mullay and Yum! Brands (YUM) named current Taco Bell CEO Greg Creed to replace outgoing head David Novak in 2015.
Ford was up 90% under Mulally since September 2006. Yum!'s stock went up 689% under Novak's 14-year stint at the helm.
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