Content-type: text/html Downes.ca ~ Stephen's Web ~ LinkedIn shares plummet after 'extraordinary' revenue miss

Stephen Downes

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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").

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Stephen Downes Stephen Downes, Casselman, Canada
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Last Updated: Apr 20, 2024 06:48 a.m.

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