LinkedIn is losing ground on Wall Street this week after reporting fourth-quarter earnings and revenue that, despite topping analyst estimates, still came with some bad news.
The bad news? Weaker than anticipated guidance.
“The company said Thursday that it saw adjusted earnings of 94 cents per share on $862 million in revenue in its fourth quarter,” CNBC reports. “Analysts had expected LinkedIn to report earnings of about 78 cents per share on $858 million in revenue, according to a consensus estimate from Thomson Reuters.”
As a result, shares of LinkedIn tumbled 28 percent in after-hours trading.
LinkedIn is experiencing the opposite of what happened to Facebook after the social networking giant reported earnings in recent days. Shares of FB exploded to record all-time highs on the strength of its mobile advertising growth and revenue.
“Our strategy in 2016 will increasingly focus on a narrower set of high value, high impact initiatives with the goal of strengthening and driving leverage across our entire portfolio of businesses,” LinkedIn CEO Jeff Weiner told the media in a written statement after the earnings report. “Our roadmap will be supported by greater emphasis on simplicity, prioritization, and ultimate ROI and investment impact.”