LNKD stock carried a positive 6% operating margin in 2012. It was briefly and only slightly profitable several years back, but things are trending in the wrong direction. Weak Financial Metrics: The company is not profitable.
#Linkedin stock symbol plus#
One minor plus from the recent collapse in the stock price the value of those stock awards to employees tumbled.
Paying in stock allows the company to avoid laying out actual cash, but the effect is still harmful for shareholders - every quarter you own less and less of the company, as the share count rises by a million or more shares. Four years ago, LinkedIn had around 100 million shares outstanding, and now it’s up to 130 million, meaning that there are 30% more shares out than just recently. It’s the equivalent of inflation for stockowners. Stock compensation has the insidious effect of slowly diluting away your ownership. However roughly two thirds of this seeming profitability disappeared to employee stock compensation. LNKD stock is getting diluted by truly gargantuan stock awards.įor full-year 2015, the company produced operating cash flow of $807 million and “adjusted” EBITDA of $780 million. Stock compensation is a large cost at many tech companies, but LinkedIn really takes it to the next level. Hidden Stock Expenses: A skeptic might say LinkedIn is being run to enrich its employees rather than make public shareholders any money. LNKD stock is now back to where it traded in 2012, however the company has successfully grown its user base and revenues dramatically during that same timespan. While LinkedIn shares were clearly and arguably rather egregiously overvalued at $250, anything looks a lot more interesting after a 50% decline. But in LinkedIn, it sees value at current prices. Among them comes famed short seller Citron Research who is generally known for bashing fraudulent and overvalued companies. This drop has caused a lot of normally skeptical people to turn bullish on LinkedIn. The stock dropped more than 40% following the recent lackluster earnings release and cautious forward guidance.
It now trades at just $118, a more than 50% decline. Stock Is Beaten Down: LNKD stock traded at $250 rather recently. This is another specialized business that offers much more promising margins than just advertising does. LinkedIn is also working on a staffing business. LinkedIn has previously said this could be a $1 billion business in 2017.
Like Facebook ( FB), there are interesting things you can do when you have a lot of specialized data about users. LinkedIn has a more robust targeted advertising arm, Marketing Solutions, that uses its vast database to allow specialized marketing. LinkedIn comes with two main ancillary products. That’s a good thing internet economics generally favor websites that have other revenue streams in addition to basic advertising. Higher Margin Business: LinkedIn is not just a low-margin online display ads business. This is no longer exponential growth, and LNKD stock has taken a hit for that. For this year, guidance is at 20-30% growth, which would be an additional $600-$900 million on top of last year’s figure. 2014 brought $2.2 billion in revenues, and 2015 came in at $3 billion. The pace of growth has slowed a bit in recent years. This more than doubled to $522 million in 2011, almost doubled to $972 million in 2012, and soared greater than 50% to more than $1.5 billion in 2013. In 2010 the company put up $243 million in sales. Rapid Growth: LinkedIn continues to enjoy soaring revenues. Is the growth story over for LinkedIn, or can shares rebound from the wreckage? LNKD Stock: Pros Many analysts threw in the towel on the company, and there was broad liquidation of LinkedIn stock. That abruptly came to an end following a downbeat earnings report that sent the stock plummeting lower. LNKD stock had been trading in a broad range generally between $200 and $250 per share for the past couple years. In recent times, the company has also branched into some adjacent markets such as staffing and specialty marketing.
#Linkedin stock symbol professional#
LinkedIn ( LNKD) is the preeminent social media site for professional employees and employers.
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