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• Linkedin stock 2017 professional#

“This would imply that LinkedIn will grow around 15% in 2017 and 10% in 2018,” the Mizuho analysts said. LinkedIn forecast full-year revenue of $3.60-$3.65bn, missing the average analyst estimate of $3.91bn, according to Thomson Reuters I/B/E/S. At least 22 brokerages cut their price targets on the stock, with RBC slashing its target by almost half to $156. Raymond James, Cowen and Co, BMO Capital Markets, JP Morgan Securities, RBC Capital Markets and Suntrust Robinson also downgraded the stock. Mizuho downgraded the stock to “neutral” and slashed its target price to $150 from $258. Talent solutions, marketing solutions, and premium subscriptions reported year-over-year revenue growth of 36%, 38%, and 28% in Q1.“With a lower growth profile, we believe that LinkedIn should not enjoy the premium multiple it has grown accustomed to,” Mizuho Securities USA Inc analysts wrote in a note. LinkedIn's revenue, therefore, is more diversified from social peers who rely heavily on advertising.įurther, all three of LinkedIn's business segments are growing at healthy rates.

Even the company's premium subscriptions segment revenue competes with its marketing solutions revenue, also at 19% of total revenue. The majority of LinkedIn's revenue comes from its talent solutions segment, at 62% of total revenue. Its marketing solutions segment, which includes revenue from display ads, sponsored InMails, Sponsored Updates, LinkedIn Ads, and Ads API, accounted for just 19% of the company's revenue.

Unlike its social network peers, LinkedIn's revenue model relies very little on advertising.

Linkedin stock 2017 professional#

Two concrete reasons not to sell LinkedInīeyond the market's overreaction to LinkedIn's reduced guidance, there are concrete reasons the professional social network looks poised to be a excellent performer in the long-term.ġ.

The long-term story for LinkedIn remains the same. So, was a 20% sell-off merited? Not really. Longer-term, of course, LinkedIn expects to be a boon for the company's financials. Costs associated with the transaction itself, as well as costs related to the integration of 's business to LinkedIn, will affect the company's profitability in the near-term. Management pointed to its recent announcement that it has agreed to acquire, a leading online learning company, as the main reason for the reduced outlook for EPS. The big surprise, here, of course, was the huge drop in expected non-GAAP EPS. The new guidance figures for 2015 provided by management when it reported first-quarter results were revenue of $2.9 billion and EPS of $1.90. When LinkedIn first shared its outlook for 2015, the company expected revenue of $2.93 billion-$2.95 billion and non-GAAP EPS of $2.95. So, what spooked the market? The key culprit was LinkedIn management's decision to lower its outlook for the rest of the year. Indeed, LinkedIn even exceeded analyst estimates for revenue and EPS of $637 million and $0.56, respectively. Actual results were revenue of $638 million and non-GAAP EPS of $0.57. The company's revenue and non-GAAP EPS exceeded its guidance for $618 million-$622 million and $0.53, respectively. LinkedIn's first quarter results were actually solid. Was LinkedIn stock's 20% sell-off merited in the first place? To explore whether or not it was, here's the backstory on the reason for the sell-off. LinkedIn still has the characteristics of the sort of company long-term investors would want to see in the companies in their portfolio. But a closer look at LinkedIn's underlying business shows exiting this winner could be a mistake. With LinkedIn (NYSE: LNKD) stock trading about 20% lower this month, after the stock tumbled when it reported first-quarter results on April 30, some worried investors may be considering selling the stock.