Like other businesses this cycle, LinkedIn CFO Steve Sordello laid some of the blame for its lower forecast on "current global economic conditions." LinkedIn also forecasted weaker sales for the upcoming quarter and fiscal year ahead than Wall Street analysts had expected.
#Will linkedin stock go up professional#
The professional social networking company posted a surprise loss of $8.4 million in the holiday quarter as it continues to invest in new products and services. The network with more than 130 million professionals using it may see some turbulence on the heels of this announcement but between the continued growth and level of clout in its usership and the flow of announcements of new monitoring ventures (such as the Recruiter Tool and Talent Pipeline), I think the company will weather through the announcement.The new normal: Twitter stock hits new low again and again LinkedIn is expecting to hire 35 engineers by the end of this year. The new technology center is expected to go up in Bangalore - this will be the first center of its kind for the company outside its headquarters in Mountain View, Calif. The company also announced Tuesday its expansion of research and development in India, according to the Times of India. The LinkedIn IPO was the biggest tech debut since Google in 2004, and though the company posted a loss in the Q3, its revenue more than doubled. But with officers holding a lion's share of the networking site's stock, this activity falls within the normal range of business on the trading floor. The real concern would have been if one or more of the officers were interested in liquidating all of their shares in the company - that would be a red flag into the inner-workings of the business. Some investors do this to capitalize on the gains they have seen and to redistribute the capital to new ventures and other were just looking for shorter investments.Ĭompanies often make the secondary offering annoucement before the 180 expires so that other firms can shore up intrest in their portfolios to grab stock as it becomes available. Of the investors I have spoken with, none have raised their eyebrows at the LinkedIn annoucement to sell stock after the 180 lock-up period.
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This unloading announcement as the secondary share market is about it open is not unexpected or uncommon, but will likely lead to some serious action for the company stock, which has seen some amazing growth in the last few months. Bain led a $53-million investing round in LinkedIn in 2008 which helped value the company at more than $1 billion. The investing group plans to sell all of its stake in the company that is now 60% higher than its IPO debut at $45. The Monday evening SEC filing stated that it will use the proceeds of the sales for "working capital and general corporate purposes, including further expansion of our product development and field sales organizations, and for capital expenditures.” LinkedIn also said it may use a portion of the proceeds for acquisitions or investments in “complementary businesses, technologies or other assets.”Ĭhief Financial Officer Steven Sordello and Senior VP of Product Dipchand Nishar are also selling nearly 100,000 shares a piece in this upcoming transaction.īain Capital Venture Integral Investors will be the largest unloader of LinkedIn stock - 3.7 million shares. If the sales go as stated, this will nearly double the number of LinkedIn shares outstanding to more than 17 million shares. LinkedIn stock opened Tuesday at 76.19 and dipped 5% for most of the early trading hours. That's a nice bonus for being at the helm for three years. Weiner has filed to sell near 373,000 shares (approximately $27 million) but will retain at least 2.3 million shares.
The most recent SEC filing by the business networking company that went public in May, stated that the company itself would sell roughly 1.3 million shares (which would net somewhere near $93 million - based on the stock price Tuesday) and that company officials and early investors are looking to sell close to 6.7 million shares (approximately $480 million).Ĭhief Executive at LinkedIn Jeffrey Weiner is among the group looking to sell shares. LinkedIn shares (NYSE: LNKD) employees and early investors are planning to cash out of some of their holdings, with Bain Capital selling off its entire stake. Early investors, officials and LinkedIn all looking to cash in on stock growth
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