LinkedIn Loss Deepens Concerns About Social Networking Valuations: StockTwits

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

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