3/2/2023 0 Comments Linkedin stock price drop![]() ![]() Ultimately, this could be a useful tool to allow for more collaboration and better project management.Īcquisitions have also been important - and cost-effective because the dealmaking was done when LinkedIn stock was at lofty levels. There is also the Lookup app, which allows people to connect within the same company. The good news, however, is that there are signs that LinkedIn is taking steps to get things back on track: The company is launching a new version of its Pulse app, which is now one of the top ranked business news readers on Apple’s ( AAPL) App Store and Google’s ( GOOG, GOOGL) Play Store. Maybe the reason is that the strong growth has led the company to become too complacent. ![]() For the most part, the mobile apps and website have seen little improvement over the years. Perhaps the most important has been LNKD’s anemic efforts at innovation. Mobile, too, has also been an engine of growth, as 52% of all traffic to LinkedIn comes from smartphones and tablets.īut that doesn’t mean LinkedIn hasn’t been without a few nagging issues. LinkedIn has amassed a tremendous user base (which is now at about 380 million), and has continued to grow its premium subscription revenue at a hefty pace, up 22% during the second quarter. LinkedIn Stock: Endorsed for Skills and Expertise It’s unique stature in social media means there’s little competition to overtake the company, which has been a big driver for LinkedIn stock over the years. Regardless, LNKD represents a unique player in the mobile and desktop world, redefining the traditional resume to be more dynamic and social. This was excessive even among other tech highfliers such as Facebook ( FB). Let’s face it, LinkedIn stock did seem overextended with a valuation over 100 times forward earnings. Consider that over the past year, the LinkedIn stock price has gone from a high of $276 to $172. But shares are down 25% for the year-to-date, and even worse over the past couple months. LinkedIn survived Monday’s broad-market selloff pretty well intact, bleeding only fractionally. ![]() And one that fits the bill is LinkedIn ( LNKD). So, which to consider? While there are certainly many to choose from, it is probably still best to focus on those that have solid businesses and durable long-term advantages. But by Monday’s closing bell, several stocks were well-off their highs, especially for those that have been the darlings of the markets. (Or take a beating if the economy turns south.) Given that LinkedIn shares were going for $20 each on a private market in January, the value has sure bubbled up in just a few months.Monday morning was a bloodbath, but the market washed much of that carnage off of the street by mid-day, as the panic selling subsided. Right now, LinkedIn revenue comes from companies that pay to recruit employees, but that line of business will face increased competition from Facebook. Until then, it will take marketing dollars to keep the cash flowing. The only way to build a stronger business base is to find services that consumers will find useful. LinkedIn can't tell how many customers it actually has and, more importantly, relatively few of them find the site of enough interest to visit even on a monthly basis. If the number of our actual members does not meet our expectations or we are unable to increase the breadth and frequency of our visiting members, then our business may not grow as fast as we expect, which will harm our operating and financial results and may cause our stock price to decline. Further, a substantial majority of our members do not visit our website on a monthly basis, and a substantial majority of our page views are generated by a minority of our members. Given the challenges inherent in identifying these accounts, we do not have a reliable system to accurately identify the number of actual members, and thus we rely on the number of registered members as our measure of the size of our network. The number of registered members in our network is higher than the number of actual members because some members have multiple registrations, other members have died or become incapacitated, and others may have registered under fictitious names. Why? As BNET's Jim Edwards pointed out, LinkedIn added some scary lines to its S-1 that explain its underlying problem: It has gotten expensive to attract people. If there are some economies of scale in this business, they've yet to show themselves. Cost of revenue increased at about the same pace as revenue, as did product development and general and administrative. In the first quarter of 2011, LinkedIn increased its revenue by 110 percent year over year, and yet its income from operations was only 40 percent that in Q1 2010. ![]()
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