LinkedIn, one of this year’s most prominent stock market darlings, has just made the acquaintance of the quarterly loss. Although the market showing must certainly come as a blow to company CEO Jeff Weiner and his team, they will still be able to keep a great deal of their bullish optimism because the loss wasn’t terribly precipitous, this time. Also, they’re experimenting major revenue increases and a stock market value that still doubles that of its initial public offering. Analysts’ forecasted that LinkedIn would see a greater loss, but the decline did not go beyond 8 percent. In all, the depreciation comprised $1.6 million. The company went public in May of this year.
On the brighter side, LinkedIn’s revenue performance bested the predictions that had been tossed around: the company’s revenue was twice that of last year’s. Also of note, the professionals’ social network has embarked on an increased spending plan to bolster development research. Still, investors are expected to remain tetchy because once November 21st rolls around, LinkedIn’s workers will be able to sell their shares; if too many decide to dump them at once, stocks will go down again. What’s on the horizon for LinkedIn? Selling more stocks and growing its member count and services.
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http://latimesblogs.latimes.com/technology/2011/11/linkedin-loss.html