LinkedIn (LNKD) Falls on Downgrade; Shares Near Netflix's Valuation With a Fraction of the Numbers
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Price: $195.96 --0%
Rating Summary:
10 Buy, 30 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
10 Buy, 30 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Shares of professional social network service LinkedIn (Nasdaq: LNKD) are seeing pressure in early action Monday after getting downgraded following a tremendous post-IPO run.
Analysts at JPMorgan -- initially bullish on the company -- downgraded the stock from Overweight to Neutral this morning, saying the risk/reward is now more balanced and limits upside.
JPMorgan's analyst Doug Anmuth notes shares of LinkedIn have surged 44 percent in the last 3 weeks versus a 3 percent rise in the S&P 500. Shares are also within 4 percent of the firm's upside price scenario.
Anmuth continues to have a positive overall view of the company, saying, "LinkedIn is disrupting both the online and offline job recruitment markets, and deeper corporate penetration and increasing member engagement will drive strong results over the next few years." He notes the downgrade is based on valuation instead of fundamental concerns.
Commenting on LinkedIn relative to Netflix (Nasdaq: NFLX), Anmuth notes LinkedIn has a market cap of $12B and Netflix has a market cap of $15B, however, Netflix will have 7x the revenue and 7x the EBITDA of LinkedIn in 2012.
LinkedIn will reports its second-quarter results on August 4 after the close. JPMorgan is looking for revenue of $106.1 million and a loss of $0.02, in-line with the consensus.
With Monday’s downgrade, three analyst firms now rate shares at a "Buy", two at "Neutral" and just one at "Sell", according to data at Ratings Insider.
Shares of LinkedIn are down 4 percent to $105.61 in pre-open action Monday.
Analysts at JPMorgan -- initially bullish on the company -- downgraded the stock from Overweight to Neutral this morning, saying the risk/reward is now more balanced and limits upside.
JPMorgan's analyst Doug Anmuth notes shares of LinkedIn have surged 44 percent in the last 3 weeks versus a 3 percent rise in the S&P 500. Shares are also within 4 percent of the firm's upside price scenario.
Anmuth continues to have a positive overall view of the company, saying, "LinkedIn is disrupting both the online and offline job recruitment markets, and deeper corporate penetration and increasing member engagement will drive strong results over the next few years." He notes the downgrade is based on valuation instead of fundamental concerns.
Commenting on LinkedIn relative to Netflix (Nasdaq: NFLX), Anmuth notes LinkedIn has a market cap of $12B and Netflix has a market cap of $15B, however, Netflix will have 7x the revenue and 7x the EBITDA of LinkedIn in 2012.
LinkedIn will reports its second-quarter results on August 4 after the close. JPMorgan is looking for revenue of $106.1 million and a loss of $0.02, in-line with the consensus.
With Monday’s downgrade, three analyst firms now rate shares at a "Buy", two at "Neutral" and just one at "Sell", according to data at Ratings Insider.
Shares of LinkedIn are down 4 percent to $105.61 in pre-open action Monday.
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