In its most recent earnings report, social media jobs site LinkedIn Corp (LNKD) shared that its Q1 earnings came in above consensus estimates, that it would adjust its Q2 revenue forecast and, most importantly, that it already has raised its sales forecast for 2014 from $2.06 billion to $2.08 billion. Unfortunately, even that more optimistic forecast still comes in below Wall Street’s consensus estimate of $2.11 billion. So you can probably guess what happened in the market after that report emerged: shares were already down 2.7 percent to $156.88 in early trading this morning. It appears investors already have decided that LNKD is the next-up social media company that will wilt under its own expectations. And the Street — what does it think? Well, Pacific Crest Securities analyst Evan Wilson cut his price target on the stock to $220 from $275, and he wasn’t alone. What about you? What do you think?
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: