NEW YORK (TheStreet) -- LinkedIn Corp. (LNKD) stock is dropping 39.57% to $116.20 in early-morning trading on Friday after the company provided lower-than-expected 2016 first quarter earnings guidance.
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, while analysts' were expecting earnings of 74 cents per share. LinkedIn forecast revenue of $820 million, while analysts were projecting revenue of $866.86 million.
However, the company's 2015 fourth quarter earnings results were above analysts' forecasts.
Additionally, LinkedIn was downgraded today to "neutral" from "overweight" at JPMorgan and downgraded to "market perform" from "outperform" at BMO Capital Markets.
LinkedIn will end its Lead Accelerator product, which the company acquired when it bought marketing platform Bizo in 2014, BMO said. Shutting down the product will make investors skeptical of the company's M&A, the firm added.
Separately, LinkedIn has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, largely solid financial position and good cash flow, and its weaknesses, including deteriorating net income, disappointing return on equity and weak stock performance.
You can view the full analysis from the report here: LNKD
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.