LinkedIn Q2 re­sults beat es­ti­mates

The Guardian (Charlottetown) - - BUSINESS -

NEW YORK - It hasn’t been a good week for so­cial media com­pa­nies, not even for the usu­ally re­li­able pro­fes­sional net­work­ing ser­vice LinkedIn Corp. The com­pany’s sec­ond-quar­ter re­sults beat Wall Street’s ex­pec­ta­tions on all fronts, just as Face­book’s did on Wed­nes­day and Twit­ter’s on Tues­day. But it’s the signs be­hind the head­line num­bers that seem to be wor­ry­ing in­vestors, enough for shares of all three com­pa­nies to fall this week. LinkedIn “did great this quar­ter,” said Gart­ner an­a­lyst Brian Blau, while not­ing that there is “some vari­abil­ity on their ef­forts quar­ter to quar­ter as they are in a very com­pet­i­tive mar­ket that is con­stantly in­no­vat­ing and chang­ing.” LinkedIn’s stock fell $17.44, or 7.7 per cent, to $209.71 in af­ter-hours trad­ing. The stock fluc­tu­ated widely af­ter the re­sults came out as in­vestors di­gested the earn­ings re­port. The stock in­creased at least 8 per cent be­fore set­tling lower. Colin Gil­lis, an an­a­lyst at BGC Fi­nan­cial, said that while LinkedIn’s stock price is roughly un­changed since the start of the year, this masks the “the wild gy­ra­tions” that have taken place in its price. He said “in­vest­ing in LinkedIn re­quires a tol­er­ance to volatil­ity, with the stock mov­ing over 10 (per cent) on each of the last four earn­ings.”

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