This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

LinkedIn Loss Deepens Concerns About Social Networking Valuations: StockTwits

Stocks in this article: TWTR LNKD YELP

NEW YORK (TheStreet) -- Investors prepared Friday for a repeat of Twitter's  (TWTR) takedown of social networking stocks on the heels of LinkedIn's  (LNKD) first-quarter loss and tepid guidance.

$LNKD will sell-off tomorrow the same way $TWTR did yesterday. http://stks.co/f0ZHi -- Dan Kim (@simboy) May. 1 at 06:37 PM

The business social network reported a GAAP loss of 11 cents per share, or $13.4 million -- despite a 46% rise in revenue, compared to the same quarter a year ago. Management attributed the loss to stock-based compensation and its $120 million acquisition of job-matching service Bright.

Excluding special items, LinkedIn would have posted a 38-cent EPS gain on $473.2 million in sales. Those numbers beat Wall Street consensus estimates by 4 cents and $6.5 million, respectively, according to figures compiled by the Analyst Ratings Network.

Typically, investors focus on non-GAAP earnings. However, many on StockTwits were not willing to ignore the GAAP loss this quarter. They said the loss showed LinkedIn needed to spend too much money in order to make money.

$LNKD Why do they say "If not for the costs of employee stock compensation and certain other expenses?" How would they make Rev without? -- Mike (@scottsdalem) May. 1 at 06:47 PM

$lnkd Co. has NO Earnings, Zero, Zilch, No Dividends and Zero Real Profits Expected) Does that about sum it up? -- Poligraph Poligrafovich (@PP_Sharikov) May. 1 at 06:04 PM

Guidance gave investors more reasons to feel bearish. Management expects revenues this quarter of between $500 million and $505 million. The high end of that guidance is beneath the $505.8 million Wall Street expected, according to stats on Yahoo! Finance. Management raised full-year guidance from prior figures. It now anticipates 2014 revenue to come between $2.06 billion and $2.08 billion. However, that number falls short of the consensus $2.11 billion estimate.

LinkedIn shares fell 4.4% in after-hours trading. The stock had risen 5% ahead of earnings on the heels of Yelp's  (YELP) better-than-expected report and corresponding 10% stock jump.

Shareholders Bail on LinkedIn Despite Earnings, Revenue Increase $LNKD -- TickrWatch (@TickrWatch) May. 1 at 06:36 PM

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs