Tags: US | LinkedIn | Stock

LinkedIn Shares Decline 25 Percent on Weak Quarterly Outlook

Thursday, 30 April 2015 05:15 PM EDT

Shares of LinkedIn Corp. are diving Thursday after the professional networking service gave a disappointing second-quarter outlook.

LinkedIn said the weak view was due to changes in currency exchange rates, costs of its pending acquisition of online learning company Lynda.com and other items.

The $1.5 billion deal announced earlier this month is by far the largest in LinkedIn's history.

For this quarter, Mountain View, California-based LinkedIn expects adjusted earnings of 28 cents per share on revenue of $670 million to $675 million.

Analysts are forecasting much higher adjusted earnings of 74 cents per share on revenue of $719.3 million, according to a poll by FactSet.

The Lynda acquisition is expensive, but LinkedIn is "building a great long-term business," said BGC Partners analyst Colin Gillis.

He also said there's often a sharp market reaction to LinkedIn's earnings, with the stock moving at least 6 percent in the last eight quarters and 10 percent or more in half of them.

LinkedIn's stock tumbled $63.93, or 25 percent, to $188.20 in extended trading. The stock had closed down 2 percent.

LinkedIn's stock plunge follows a disappointing report from Twitter Inc. earlier this week which sent that company's stock down sharply as well.

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Companies
Shares of LinkedIn Corp. are diving Thursday after the professional networking service gave a disappointing second-quarter outlook. LinkedIn said the weak view was due to changes in currency exchange rates, costs of its pending acquisition of online learning company and other items.
US, LinkedIn, Stock
199
2015-15-30
Thursday, 30 April 2015 05:15 PM
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