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Twitter Inc. (NYSE:TWTR)’s Gloomy Quarter Darkens LinkedIn Corp (NYSE:LNKD) Expectation

Boston, MA 05/01/2014 (wallstreetpr) – Today will be a big day for LinkedIn Corp (NYSE:LNKD) as it prepares to disclose its first quarter earnings today. However, there are less hopes that the company will be able to pull up an impressive quarter.

Expectations Remain Dull

Expectations of LinkedIn Corp (NYSE:LNKD)’s slower growth in the quarter is linked with Twitter Inc. (NYSE:TWTR)’s disappointing first quarter results this week. The stumbling revenue growth in the internet stocks has heightened the doubts that whether the rich valued companies would be able to keep the momentum of high revenue growth. As of the first quarter, LinkedIn is expected to post revenue to the tune of $466.6 million, higher by 44% from its year earlier quarter but slowest in the last four years. As per analysts surveyed by Thomson Reuters, the earnings per share expectation excluding one-time items are kept at $0.34, denoting 24% decrease, which is for the first time in the last 15 quarters.

Reflection OfFourth Quarter

Apart from Twitter Inc. (NYSE:TWTR)’s languished growth, LinkedIn’s individual slow-paced user growth in the previous quarter is also fueling the slowest revenue growth fears. In the fourth quarter, LinkedIn Corp (NYSE:LNKD) reported 7% growth in its users, which is lower than the 9% growth in the preceding quarter. The network currently has 300 million members. In the fourth quarter, the company had projected softer estimates for the first quarter. However, according to an analyst, Arvind Bhatia, at Sterne Agee, LinkedIn holds a history to surpass its own projections and in the last eight quarters has exceeded its own midpoint guidance by 7%. While maintaining a ‘neutral’ rating on the stock, Bhatia reiterated that, in the short term, investors are likely to be concentrated on the top-line growth deceleration. On the contrary, unlike Bhatia, some analysts appear to be positive about the company’s fundamentals that have an addressable market.

Published by Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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