LinkedIn Had a “Solid” First Quarter, but Its Stock Is Collapsing

Poor Jeff Weiner.

Photo by Robert Galbraith/Reuters

LinkedIn kicked off 2015 with a “solid quarter” filled with “meaningful progress,” Chief Executive Jeff Weiner told investors on Thursday. The company’s stock is plummeting.

Shares of LinkedIn are getting hammered in extended trading after the company slashed its revenue forecast for the second quarter. Shortly after the closing bell, shares lost more than 20 percent, or roughly $65 in value. They’re currently off about 19 percent for an after-hours price of around $200. LinkedIn’s stock closed down approximately 2 percent to $252.13 for the day’s regular session.

For the first quarter of 2015, Weiner wasn’t wrong—LinkedIn did just fine. Earnings came in at $0.57 per share, which was in line with what analysts had predicted. Revenue rose 35 percent to $638 million, slightly topping forecasts for $637.8 million.

But the company’s second-quarter guidance spooked Wall Street. LinkedIn said it expects revenue to finish between $670 million and $675 million next quarter, as opposed to a predicted $718 million. Steve Sordello, LinkedIn’s chief financial officer, said on the earnings call that the lowered guidance reflects changes in foreign exchange rates, adjustments to company operations, and the costs of acquiring, an education and skills development site for professionals.

LinkedIn last closed below $200 a share in October 2014.