3/4/2023 0 Comments Linkedin stock price todayAdvertising is the name of the game in this segment, with selling services and products key. Marketing Solutions lets companies and individuals market to LinkedIn’s user base. Divisional growth has been great: last year it grew 42%, down only slightly from 46% growth between 20, well above average industry growth. The namesake website’s network effect is a competitive advantage the scale it has developed gives employers the ability to sift through millions of potential recruits and search their profiles, contact recruits and track important candidate activity. This is essentially LinkedIn’s main business - it accounted for 63% of sales last year and grew 45% year-over-year. Talent Solutions helps recruiters find and hire talented employees. And 20% is very respectable, especially considering earnings growth for the S&P 500 as a whole is projected by Goldman Sachs to be negative this year, which jives with what other market prognosticators are expecting. LinkedIn stock has three revenue streams to keep growth at a decent enough clip to propel the stock forward. Slowing sales yes, but cash flow trends are as robust as ever. Indeed, it was running at over 100% per quarter back in 2011, dipped to the 34% mentioned, and is projected to run at about 20% annually in the coming two years. The absolute level of overall growth continues to impress, but the market is worried that the trend is slowing. The negative reaction by investors was way too short-sighted. Yet, LNKD plummeted because management lowered its Q1 sales and profit projections. Earnings per share also handily beat expectations, jumping 54% to 94 cents per share. LinkedIn’s Q4 sales jumped 34% to $862 million, beating analyst projections. It is also a rare, publicly traded pure play in the growing online recruiting market. The firm also has multiple revenue streams - this is unique among social media firms that rely solely on advertising for sales. Sales growth is decelerating, but it’s still high enough and well above what investors are likely to find elsewhere. The adverse reaction to the earnings release easily qualifies as an overreaction. That point may be here as LinkedIn’s best days are ahead of it - cash flow is soaring and should for many years to come. There were many overly ambitious buy ratings in the mid-$200 range, and patience appears to have paid off for those waiting for a more compelling entry point. LinkedIn stock has recently settled around $118 - a far cry from its 52-week high of close to $270. The drop was sudden and dramatic, with LinkedIn stock falling 84 points to $108 per share in a single day. LinkedIn Corp ( LNKD), a leading provider of social networking for working professionals, saw its share price plummet 43% after it reported fourth-quarter earnings.
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