February 5, 2016

Ouch! LinkedIn links out, trading down more than 42% today.

One word:

Networking website LinkedIn
stock (NYSE:LNKD) is currently trading down more than 42% after releasing earnings results far beneath analyst estimates.  That's a jaw dropping 11 billion or so dollars of the company's worth erased so far in today's trading session.

And you thought you were havin' a bad day.

LinkedIn appears to be suffering from, among other problems, the "Twitter Syndrome" I posted about in December.  Is LinkedIn truly a useful networking tool worthy of its still lofty valuation?

Frankly, I've yet to see the usefulness of LinkedIn as a professional networking tool (and clearly others share my opinion
), same as I've yet to find usefulness in Twitter as a communication tool.  Do people who use all of these social media platforms actually get anything done at work or in their daily personal lives?  And really, are the "Connections" some boast about on LinkedIn truly meaningful, or are they simply a faux statistic for social media horn blowing?  Time will tell if LinkedIn can recover and prove its usefulness.  In the meantime, I envision that volatility in tech stocks will continue in the near future as we see more disappointments and fall outs similar to those seen recently from Yahoo, Twitter, and today LinkedIn.

For information about my nationwide Consulting, Expert Witness, and Tax Services visit Fouts Financial Group.

Mary Rae Fouts

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