Written by The Business Journal Staff
(AP) — Investors have given LinkedIn a poor job review in the form of a dramatic sell-off that wiped out nearly $10 billion in the professional networking service’s market value after it issued a surprise forecast for slower growth this year.
LinkedIn shares plunged almost 44 percent on Friday, a day after the company reported better-than-expected earnings for the last quarter, but warned that revenue would fall short of what most analysts were projecting for 2016. It also said it was discontinuing a new online advertising system that hadn’t worked out.
Several analysts noted that LinkedIn has a track record of beating its own forecasts, but investors seemed shaken by the latest report. The stock closed Friday at $108.38 after its worst slide since LinkedIn went public in 2011.