LinkedIn Corp. (NYSE: LNKD)
Shares of LinkedIn took a beating in the post market session on Thursday as the company posted a weaker than expected outlook compared to Wall Street estimates. LNKD posted adjusted earnings of just 94 cents a share on $861.9 million in revenue while analysts were looking for 78 cents a share on $857.3 million in revenue. However, outlook was well below estimates and that is what has caught traders attention and putting pressure on shares. The company announced 2016 guidance of $3.05 to $3.20 per share on revenue of $3.6 to $3.65 billion while analyst had predicted earnings of $3.70 per share on $3.91 billion in revenues. This was a big miss and as you can tell from the chart, stock prices took a beating for it. Currently analyst have an average price target of $276.07 but with an outlook like this we can definitely expect some downgrades to come out in the near future.
“Our strategy in 2016 will increasingly focus on a narrower set of high value, high impact initiatives with the goal of strengthening and driving leverage across our entire portfolio of businesses. Our roadmap will be supported by greater emphasis on simplicity, prioritization, and ultimate ROI and investment impact.” (SeekingAlpha)
LinkedIn took a pounding in the post market session after releasing weak earnings. They closed the trading day at $$192.28 and hit lows of $132.55 in the premarket, that’s a 31% drop in share price. Shares dropped straight through all kinds of support levels and look to have stabilized off in the $130 range. This is the lowest the share price has been since 2013, erasing all those hard earned gains. We should see some support come in at the $127 and $120 range while resistance will be met at $140 and $150 price levels. Looking at the daily chart you can see that shares have been trending up since its IPO debut back in 2011 but this move will certainly bring in lower lows and break this trend it’s been in. With prices trading in the $130 range we should see a death cross form on the daily chart, a bearish technical, and this will also complete what looks like a head and shoulder pattern with the neckline at the $170 price level. There is a lot of bearish technicals on this chart and I wouldn’t be surprised to see some more pressure on share prices over the next few days.
LinkedIn Corp. operates an online professional network on the Internet. Its proprietary platform enables members to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities. It product lines include Talent Solutions, Marketing Solutions and Premium Subscriptions these three product lines are sold through two channels, an offline field sales organization which engages with both large and small enterprise customers, as well as an online, selfserve channel. The company was founded by Allen Blue, Reid G. Hoffman, Jean-Luc Vaillant, Konstantin Guericke and Eric Ly in November 2002 and is headquartered in Mountain View, CA. (MarketWatch)