LinkedIn shares are having their worst day ever
LinkedIn’s stock is collapsing after its latest earnings report.
On Thursday (Feb. 4) the company announced earnings and revenue that beat estimates for the fourth quarter of 2015, but it provided a weaker forecast for the start of 2016 than analysts had expected. Shares are down more than 40%, by far LinkedIn’s worst day ever.
This isn’t the first time that LinkedIn has tanked on a poor outlook, which might be part of what’s worrying Wall Street. You can read more about the various problems with LinkedIn here, but the tl;dr is that it has a mess of services and projects going, and a lot of those things just aren’t going very well. Growth is slowing for both revenue and membership. New ideas the company tried last year are now getting phased out. Analysts are concerned. CEO Jeff Weiner has attempted to reassure investors, noting on Thursday’s conference call that LinkedIn’s redesigned app has sped up growth in users, page views, and sessions.
Wall Street isn’t buying it, though. That might take more than an app to fix.
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