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article imageLinkedIn sees share price fall

By Tim Sandle     Feb 9, 2014 in Business
Shares in the professional networking service LinkedIn fell by 15% at the close of trading after the network posted a weaker-than-expected outlook.
Despite recording sales growth slow for the fourth straight quarter, the professional networking site LinkedIn saw a sudden drop in its share price. This was because investors had expected greater growth. For the first quarter of 2014, LinkedIn expects revenue of up to $460 million. However, this is below earlier analyst projections for $469 million, according to Money Morning.
Commenting on the 'disappointing' figures, LinkedIn chief executive Jeff Weiner issued a statement where he said: "We are investing significantly in a focused number of long-term initiatives that will allow us to realize our vision to create economic opportunity for every member of the global workforce."
Setting out a new strategy, Weiner said that the network aims to expand into China and to further develop its mobile application and strengthen its jobs vacancy business.
Commenting on the stuttering performance, Steve Weinstein, an analyst at ITG Investment Research told the Irish Independent that "LinkedIn is continuing to grow, but that growth is slowing because of a scaling up of the business. As you get bigger, it gets harder and harder to find a lever that can be material to growing your business."
It seems that, along with Twitter and Facebook, every social networking site has a peak and then struggles a little to develop new ideas and momentum.
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