LinkedIn stock (NYSE: LNKD) is ping-ponging. Shares fell more than 5% after hours and then shot up 2.7% as investors decide how to interpret the professional networking site's third-quarter earnings, reported after closing bell today (Thursday).
We've got guidance for investors here...
Money Morning tech specialist Michael A. Robinson - a Silicon Valley expert with more than 30 years of market analyst experience - said there were three key numbers to focus on in today's LNKD earnings: user growth, operating margins, and mobile growth.
"I'd like to see what's going on with cash flow - what LinkedIn's margins look like," he said ahead of the report. "Also, mobile is huge and it's going to continue to be important moving forward. I want to see the company's future direction on mobile."
With those in mind, here are the important details from LinkedIn's earnings report:
The real key to evaluating where the LNKD stock price will head is not in the Q3 numbers...
Robinson stressed he's more interested in forward guidance.
"Right now, we're in suspended animation with this market," he said. "When you miss expectations even by a penny, your stock suffers. So I'm mostly concerned with guidance for the quarter ahead."
And today, LinkedIn's Q4 guidance was not as strong as we wanted to see...
The company projects EPS of $0.49 per share on revenue of between $600 million to $605 million. That's well under Wall Street estimates of EPS of $0.52 per share on revenue of $611.5 million.
So take these positive Q3 earnings with pause. If you're looking to get into LNKD stock right now, this may not be the best time. Next quarter could disappoint.
LinkedIn stock closed up 1.7% to trade at $202.90 per share Thursday. For the entire year, LNKD expects a revenue range of $2.175 billion and $2.180 billion.
Next for Investors: Stocks had a bumpy ride in October. By mid-month, the Dow had dropped more than 5%. The S&P lost 5.55% and the Nasdaq was down more than 6% in the same period. That's why Robinson had his eye on four tech stocks to buy at "stupid cheap" prices. He encourages readers to jump on these bargains...