May 3rd, 2013
Linkedin shares drop after weak forecast
Following the release of a weaker-than-expected forecast for the current quarter, shares in Linkedin dropped by more than 10% in after-hours trading in New York.
Analysts had expected revenues of around $359m (£230m) for the April to June quarter, however, Linkedin announced it expects revenues of between $342m to $347m (£220m to £223m), raising concerns that the pace of growth may be slowing.
The lower than expected forecast came despite the firm reporting that profit in the first quarter more than quadrupled from a year ago. Linkedin made a net profit of $22.6m in the three months to the end of March, up from $5m during the same period last year.
Linkedin said that its revenue in the current quarter will be impacted as it looks to adopt new approaches to advertising, particularly in the mobile segment.
Steve Sordello, head of finance at Linkedin said “We are seeing some encouraging early signs, but it’s of a very small scale right now.”< Back to Blog