LinkedIn surges 18 per cent in single biggest one-day jump
11 Feb 2012
LinkedIn, the dominant professional networking site was one of the few bright spots yesterday on Wall Street as it sought to connect with investors. The company's shares surged around 18 per cent to $89.96 in the single biggest one-day jump since its initial public stock offer in May. LinkedIn's stock had doubled in value since the IPO.
The professional networking site released its fourth-quarter earnings on Thursday. Revenue more than doubled from the previous year to nearly $168 million and the Mountain View, California, company earned $6.9 million, beating expectations of analysts. LinkedIn expects its revenue to shoot as much as 65 per cent this year, to $860 million.
Meanwhile, the site continues to gain more popularity. Its membership soared to over 150 million from 131.2 million in the third quarter. As it was signing up more professionals LinkedIn was able to offer more services and pick up more advertisers.
Analysts are bullish on the company's prospects.
In a research note, Jefferies & Co analyst Youssef Squali said he was keeping his estimates above other analysts' and management and the company did not see any significant threat to the model in its current form. He has priced his target at $92.
JP Morgan analyst Doug Anmuth hiked his price target to $90 from $84.
