Networking site LinkedIn shares fall 15% on weak outlook

Linkedin CEO Jeff Weiner LinkedIn's chief executive Jeff Weiner says the company is looking for new sources of growth

Related Stories

Shares in professional networking service LinkedIn slumped by as much as 15% in after-hours trading after it posted a weaker-than-expected outlook.

LinkedIn expects first quarter revenue of up to $460m (£282m), which is below analyst projections for $469m.

The company has also seen sales growth slow for the fourth straight quarter.

Its poor showing comes after Twitter saw a steep sell-off in its stock following its disappointing first public earnings report.

LinkedIn chief executive Jeff Weiner said the company is currently looking for new sources of growth.

"We are investing significantly in a focused number of long-term initiatives that will allow us to realize our vision to create economic opportunity for every member of the global workforce," he said in a statement.

The California-based company also plans to further develop its mobile application and strengthen its jobs vacancy business.

About one quarter of LinkedIn's traffic now comes from mobile devices.

Mr Weiner also said they plan to expand into China, the world's most populous country, and recently appointed a new executive to head operations there.

LinkedIn is the only major US social network not blocked in China.

New purchase
LinkedIn headquarters in California LinkedIn is the only major US social network not blocked in China.

LinkedIn also announced on Thursday that it had bought data analytics company Bright Media for about $120m.

Bright Media is a two-year-old start-up which uses algorithms to match job candidates with prospective employers.

Its founder Eduardo Vivas said in a statement that they were excited to join LinkedIn.

"The company shares a similar vision and is equally obsessed about using data and algorithms to connect prospects and employers," he said.

LinkedIn makes the most of its money from selling service subscriptions to job recruiters, who use the website as a database for potential candidates.

Many other social networking sites such as Twitter and Facebook depend on advertising sales.

LinkedIn shares have surged almost fivefold since it went public in the US in mid-2011.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    MARKET UPDATE 08:07:

    Tokyo stocks lost early gains to finish down 0.29%. The benchmark Nikkei 225 index lost 44.14 points to close at 15,284.42. Geopolitical worries about Gaza curbed risk appetites. Hong Kong shares ended the morning session 0.39% higher after preliminary figures showed an index of Chinese manufacturing activity hit an 18-month high in June.

     
  2.  
    WINTER STORM COMPENSATION Via Twitter Adam Parsons Business Correspondent

    tweets: OFGEM says SSE and UKP "could have done more to get customers reconnected faster" during winter storms

     
  3.  
    WAGES 07:53: Radio 5 live

    "Wages are still flat," says Paul Mawdsley, a recruiter who runs Mawdsley Consultancy, talking to 5 live. "There isn't a great demand in the labour market yet," so that's keeping salaries down. He's also seeing a "dire shortage" of engineers in such areas as pneumatics and hydraulics. Not enough people are being trained.

     
  4.  
    INTEREST RATES 07:50:
    Bank of England Governor Mark Carney

    Meanwhile, the Guardian thinks the Bank governor is worried about low interest rates leading households to take on too much debt. As you might imagine that puts them on either side of the when-are-interest-rates-going-to-rise guessing game that is fast becoming a national obsession.

     
  5.  
    ENERGY PROBE 07:40:

    The CMA's probe will see whether energy companies should be wholesalers as well as selling to retail customers (you). The gas market appears to be working better than the electricity market, and they'll try to find out why. They won't be looking at big business customers because that market looks fine, the CMA says.

     
  6.  
    INTEREST RATES 07:31:

    Bank of England governor Mark Carney is in all the newspapers today following his speech to the Commonwealth business conference yesterday. The FT interprets Mr Carney's speech as revealing deep concerns about household indebtedness and the effect an interest rate rise will have on households' ability to service their debts.

     
  7.  
    UNILEVER RESULTS 07:23:

    Unilever, the food giant, has said first half net profit rose to 3bn euros (£2.37bn) from 2.68bn euros even as sales fell. Its cost savings plan is working well, it said. Excluding businesses sold or otherwise disposed of, sales rose 3.7%.

     
  8.  
     
  9.  
    WINTER STORM COMPENSATION 07:19:
    SSE logo at the SSE Training Centre in Perth

    SSE and UK Power Networks (IKPN) are to pay an additional £3.3m for delays in getting power back up and running to households in southern England following last winter's storms. That's on top of the £4.7m the two energy companies are paying out to customers under guaranteed standards and in goodwill payments. It brings the total paid out by the two companies to £8m.

     
  10.  
    ENERGY PROBE 07:04: Breaking News

    The Competition and Markets Authority (CMA) will carry out an independent investigation to see if there are any features of the energy market which "prevent, restrict or distort competition and, if so, what action might be taken to remedy them," it says. It will report back by Christmas day 2015.

     
  11.  
    INTEREST RATES 06:56: Radio 5 live

    Kathleen Brooks of FOREX.com thinks January will be the time for a rate increase from the Bank of England. Maybe a 25 basis point increase to 0.75%, she says. Bank governor, Mark Carney, said yesterday there may be more labour supply than previously thought. Wages growth is thus being held back.

     
  12.  
    RUSSIAN SANCTIONS 06:44: BBC Radio 4
    Russian President Vladimir Putin

    Kathleen Brooks has now popped up on the Today programme. She says sanctions against Russia "are toothless at this point....Russia has a lot of energy that the West wants." She adds divisions in the West over energy policy have been exposed by the fact "the UK and France have a spat about sanctions and that just plays into Vladimir Putin's hands." Ms Brooks says there have "also been rumours that Russia has been unofficially propping up the rouble. The sanctions are not going to hurt the European Union's energy links to Russia."

     
  13.  
    ENERGY PRICES 06:31: Radio 5 live

    If you have to steel yourself with a nice cup of sweet tea before opening your latest energy bill, spare a thought for Nigel and Linda Brotherton, who were told by Npower that their monthly direct debit was going to increase from £87 to £53,480,062. Npower has apologised and the incorrect bill has been cancelled. "It's a massive shock," he tells 5 live.

     
  14.  
    GLAXOSMITHKLINE 06:24: Radio 5 live
    gsk

    David Buik of Panmure Gordon is helping us digest the GlaxoSmithKline results on 5 live. "Sales to China is only about 3% of its total business," and so the bribery scandal there is an unwelcome distraction.

     
  15.  
    ROUBLE 06:15: Radio 5 live

    Kathleen Brooks of FOREX.com is on 5 live talking about Russia. The Russia rouble has been "resilient" bearing in mind the new sanctions against Russia. "They are able to shrug off geopolitical risk quite quickly," she says. President Putin may be "breathing a sigh of relief," she adds.

     
  16.  
    POUND 06:01: Radio 5 live

    The pound buys about 1.27 euros, its strongest in nearly two years - don't get excited that's not what you'll get from your local foreign exchange. Still, Kathleen Brooks, a research director at FOREX.com, is on 5 live talking about it. The strong pound has helped ease inflation, she says. "Over the period of the financial crisis we had sky high inflation," she adds. The recovery is consumer-driven, which is aided by a stronger pound, which means cheaper imports.

     
  17.  
    06:00: Howard Mustoe Business reporter

    Good morning! Get in touch via email at bizlivepage@bbc.co.uk or on twitter @BBCBusiness

     
  18.  
    06:00: Matthew West Business Reporter

    Good morning folks. So what's new? Facebook has posted some stonking profits for its second quarter, the US has - just - lifted its ban on flights into Tel Aviv and it's Thursday, so General Motors has decided to recall another couple of hundred thousand cars overnight. There's plenty more to come, stay with us.

     

Features

  • Shinji Mikamo's father's watchTime peace

    The story of the watch that survived Hiroshima


  • Hamas rally in the West Bank village of Yatta, 2006Hamas hopes

    Why the Palestinian group won't back down yet


  • Mary WayaQueen of the court

    Woman who beat "fat" jibes to turn Malawi into netball champions


From BBC Capital

Programmes

  • A man holds a sign which reads Bring Back Our GirlsHARDtalk Watch

    Why there is still hope and optimism for the rescue of Nigeria’s kidnapped schoolgirls

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.