NEW YORK (TheStreet) -- LinkedIn Corp. (LNKD) shares are taking a hit, down 1.58% to $107.40 in Tuesday's pre-market trading session after analysts at Barclays earlier today slashed their rating on the social networking service to "equal-weight" from "overweight."
When the company posted its fourth quarter 2015 earnings in early February that beat expectations, it issued a disappointing 2016 first quarter guidance of 55 cents a share, far below Wall Street's estimates of 74 cents a share.
Since the outlook, the stock has fallen over 40%, analysts noted.
The firm also added, "LinkedIn has always been richly valued as high revenue growth led to a willingness of investors to pay a premium multiple for the shares."
Another big issue is that the company is challenging to value on traditional metrics, according to the analyst note.
Until investors see more catalysts, the firm is siding with the bears for now.
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D+.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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' author.
You can view the full analysis from the report here: LNKD