After the market close on Thursday, the Mountain View, CA-based professional online networking company provided 2016 first quarter earnings guidance of 55 cents per share, lower than analysts' estimates for 74 cents per share. LinkedIn projected revenue of $820 million, missing forecasts for revenue of $866.86 million.
LinkedIn's growth story could stay "broken" until the next quarter's financial results are reported, which is a long time to wait, says TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust portfolio, in a Real Moneyarticle on Friday. (Free access during TheStreet's Open House)
"You have a stock in free-fall where sellers will take it as low as they want because they don't have any way to value it anymore," Cramer said. "It had already screwed up once. They are done with it."
So far today, 33.64 million shares of LinkedIn stock have traded, well above the company's 30-day average of 1.75 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: LNKD