Should Investors Dump Facebook Stock for LinkedIn?
LinkedIn Corp. (Nasdaq: LNKD) just reported fourth-quarter earnings that blew away Wall Street estimates, a nice addition to its already impressive resume -- and one that is making LNKD much more attractive than Facebook stock.
LinkedIn earned 35 cents a share, nearly triple the 12 cents earned in the same quarter a year ago. Net income soared 60% to $11.5 million, up from $6.9 million. Revenue jumped 81% to $304 million up from $168 million. Analysts were looking for 19 cents on revenue of $280 million.
U.S. markets accounted for 62%, or $189 million, of Q4 revenue. That was down 2% from the previous quarter. But international growth was robust, kicking in $114.6 million to LinkedIn's bottom-line.
CEO Jeff Weiner called 2012 a "transformative year."
"We have exceeded our own expectations by a wide margin," CFO Steve Sordello said during a conference call.
Shares surged $12.11, or some 10%, to $136.20 after hours Thursday following the report. The rally continued Friday with shares climbing another $26, or almost 21%, hitting an all-time high of $150.25 intraday.
Since its May 2011 initial public offering at $45, shares have more than tripled.Read More...
Facebook Earnings Preview: Will Investors "Like" Q4 Earnings?
Facebook (Nasdaq: FB) stock has staged an impressive rebound in recent months after the company's disastrous IPO.
Since mid-November, the social networking giant's stock has gained more than 68%, going from a near-low of $19 to more than $32.
Investors will be watching closely when Facebook releases Q4 earnings after close tomorrow (Wednesday) to see if the company can maintain its momentum.
Expectations are high, as a bevy of analysts have upgraded their outlooks for the stock, though it is still trading well below its IPO price of $38 and its high of $42.Read More...
Wall Street projections are for Facebook to report earnings of 15 cents per share on revenue of $1.52 billion.
Facebook Graph Search: Not Good Enough to Help Stock
The excitement Tuesday among Facebook stock (Nasdaq: FB) investors and industry followers over the company's mysterious event was quickly doused after the social networking giant announced the launch of a Facebook graph search - a kind of closed social search engine.
Immediately following the statement from Facebook CEO Mark Zuckerberg at the hyped media event at FB headquarters, shares of Facebook stock slipped more than 1% on extremely heavy volume. The news was a disappointment to many who had been hoping for something bigger, flashier and more tangible, like a Facebook phone.
The new "knowledgeable graph search" is not a Web search, Zuckerberg explained. It is a search that simply trolls Facebook's vast database.
"I thought that this couldn't be done, but like any good Facebook team would do, they took this challenge. A few months later they had a version that was basically working," a proud Zuckerberg said.
Facebook continues to try to find ways to monetize its massive 1 billion users. Graph search aims to do that by bringing people back to the site more frequently and keeping them there longer.
But Facebook stock investors question if this graph search tool can really do that.Read More...
- Mystery Facebook Event: Five Things that Could Happen The social networking giant sent reporters an invitation last week to "come and see what we're building." Get our predictions for Tuesday's big announcement and what it could mean for FB stock. Read More...
- Is Zynga (Nasdaq: ZNGA) Doomed Without Facebook? Zynga Inc. (Nasdaq: ZNGA), creator of FarmVille and other popular social games, has had a special business relationship with Facebook Inc. (Nasdaq: FB) for years. But now it's over. Read More...
Facebook Stock Rises Despite These 852 Million Reasons to Fall
It's difficult to think that an additional 852 million shares of Facebook stock hitting the market wouldn't weigh on the already struggling share price.
That's why, for the third time in nearly as many months, Facebook Inc. (Nasdaq: FB) on Wednesday braced for what could have been the largest selling spree yet to hit the social networking giant.
Scores of early investors and employees were at liberty to sell 778 million shares. Another 31 million in restricted stock, awarded to employees who joined the Menlo Park, CA-based company prior to 2011, were also unbound, along with 48 million shares held by former employees.
The staggering number is almost equal to Facebook's existing 921 million share float, according to data from the company's most current filing with the U.S. Securities and Exchange Commission.
But, a strange thing happened.
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How Facebook (Nasdaq: FB) is Sapping the U.S. Economy
Facebook (Nasdaq: FB) is a drain on the U.S. economy.
No, we're not talking about Facebook's IPO fiasco earlier this year and the subsequent stock price meltdown. It's bigger than that.
Facebook is worst offender among the many Internet distractions keeping workers from getting things done in the office.
Most workers stop what they are doing several times an hour to respond to messages from friends and co-workers on social media like Facebook and Twitter, browse the Internet, and check and respond to e-mail.
And once distracted, it takes time for a worker to get back to the task at hand - one study put the average disruption at 23 minutes.
All those interruptions add up to a massive expense for businesses and the U.S. economy.
Execs Keep Selling Their Facebook Stock – Time to Worry?
The market has been buzzing about the fact that three top executives of Facebook have taken their first opportunity to sell some of their stock in the social networking company.
The sales were part of 230 million shares awarded to top executives and employees prior to the IPO that were subject to lockup until last week.
According to Forbes, another 777 million shares awarded to Facebook employees will come off of lockup next week. It is expected that Facebook employees will continue to sell shares for the rest of the year.
Why Facebook Stock Soared After Earnings Report
Facebook stock (Nasdaq: FB) was up almost 10% in the first 30 minutes of after-hours trading today (Tuesday) after the release of its third-quarter earnings report, its second as a public company.
Releasing earnings after market close, the social network leader posted earnings per share of 12 cents, on revenue of $1.26 billion, or 32% higher than the year-ago quarter.
While Facebook did not provide an outlook following its uninspiring second quarter release, analysts were looking for 11 cents per share on revenue of $1.2 billion, according to data from Thomas Reuters.
But this positive vibe doesn't mean Facebook's earnings problems are solved.
Will a Poor Facebook Earnings Report Seal the Stock's Fate?
The third-quarter Facebook earnings report will come out Oct. 23 after the markets close, and the results are looking increasingly dismal.
Despite a recent milestone (one billion users), a new "want" button feature and a "pay-to-promote post" option, the company has failed to drum up investor and analyst fanfare.
Wall Street shrugged off all of the recent news and Facebook (Nasdaq: FB) stock barely budged, except to move a little lower.
Even CEO Mark Zuckerberg's mid-September interview, which appeared to put some spark back into Facebook's fading shares, now seems like a very distant memory.
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