LinkedIn shares plummet after 'extraordinary' revenue miss

Sarah Frier, Globe, Mail, May 01, 2015
Commentary by Stephen Downes

Here's another example of a stock losing a quarter of its value after missing an earnings target (and proof that releasing the news via an unauthorized tweet really has nothing to do with the plunge in value). "LinkedIn Corp. shares plunged 25 per cent after the company forecast revenue that missed analysts’ estimates, citing the strong dollar and slower than expected growth." More evidence of the irrationality of the stock market, which in this case appears to be about as accurate at pegging value as a blindfolded man throwing darts at a jigsaw puzzle. (P.S. this story pegs the cause of the drop on missed revenue expectations, but I've seen stocks fall after exceeding expectations, on  the dubious ground that the "didn't beat expectations as much as expected").

Views: 0 today, 157 total (since January 1, 2017).[Direct Link]