LinkedIn caught in the Twitter backlash as shares drop 15%
The business-networking site’s expected revenues were below analysts’ hopes
Friday 07 February 2014
LinkedIn has become the latest social media giant to worry Wall Street with its growth forecasts, in the wake of Twitter’s disappointing user numbers earlier this week.
The business-networking site’s expected revenues in the first three months of this year, and its forecast of annual sales of just over $2bn (£1.2bn), were below analysts’ hopes. LinkedIn suffered a fourth consecutive quarter of slowing growth in the last quarter of 2013. Its sales still climbed 47 per cent to $447.2 m.
“Growth is slowing because of a scaling up of the business,” said Steve Weinstein, an analyst at ITG Investment Research. “As you get bigger, it gets harder.”
Revenues from Europe, the Middle East and Africa were up 55 per cent to $108m. Global membership stands at 277 million, against 202 million a year ago. Mobile generated 41 per cent of traffic to LinkedIn – behind Facebook and Twitter, which now receive a majority of revenue from mobile.
LinkedIn’s stock market value has jumped almost fivefold since floating in 2011 to reach $27bn. But the shares dropped 11 per cent in after-hours trading on Thursday in response to its results, and were down 7 per cent in afternoon trading on Friday.
Twitter’s shares firmed $3 to $53 yesterday after a 24 per cent fall on Thursday as investors took fright at a major slowdown in new users. Its stock still remains almost double the level on its November debut.
- 1 Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
- 5 Friends reunion: Jennifer Aniston, Lisa Kudrow and Courteney Cox perform mini sketch on Jimmy Kimmel Live
Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
Californian drought is so severe it's 'causing the ground to move'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...
£400 - £500 per day: Orgtel: Test Manager - Banking - West Yorkshire - £400-£5...