Within an hour, the company lost about $10 billion dollars of market capitalization
LinkedIn's shares experienced its worst day on Friday. The dominant online platform for professionals and specialists in human resources erased with one stroke over 40% of its market capitalization. Shares of network went down at the beginning of the trading session on Wall Street with about 41% to 112 dollars per share.
At the close of the market on Thursday price was 192.28 dollars per share, giving the company a market capitalization of $25 billion. By Thursday LinkedIn shares had already lost 15 percent from the beginning of this year, but a year ago the shares were worth still $270 per share, calculated Bloomberg.
This is the most serious downturn for the shares of this company, wiping about $10 billion from its market capitalization. On Thursday, the company announced that it expects net earnings per share for the first quarter amounted to 0.55 dollars per share, but analysts had expected 0.75 dollars per share.
The company expects annual revenue of $3.6 billion to $3.65 bln., but market expectations were for $3.9 bln.
LinkedIn reported revenue of $861.9 million for the fourth quarter, with a loss of 0.06 dollars per share, or $8.4 million. Nervousness of the shareholders can be understood better yet, if we look at the whole year. The loss for 2015 amounted to $166 mln. compared to only $15.3 million a year earlier.
LinkedIn also announced that closes Lead Accelerator, advertising business-to-business network, which was bought in 2014 with the provider of marketing services for businesses Bizo for nearly $175 million.
For the last year LinkedIn shares sank by over 57%.
Shares of LinkedIn Corporation (NYSE: LNKD) on the premarket soared more than 48% after Microsoft Corp. (NASDAQ: MSFT) announced that it acquires a social network for $ 26.2 billion.
