LinkedIn shares are in freefall after issuing downbeat financial forecast

 
James Nickerson
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LinkedIn reported revenue rose 34 per cent year-on-year to $862m in the fourth quarter (Source: Getty)

LinkedIn shares are plummeting, down 37 per cent as markets opened in the US.

The falling share prices comes after LinkedIn issued a downbeat financial forecast for 2016.

The social media giant said it forecast earnings of $0.55 per share, well below analysts' expectations of $0.74 per share.

Read more: Which tech giant makes $1,409 profit every second?

The company was let down by its revenue guidance for the first quarter of 2016, which it put at $820m, well below the consensus estimate of $866.9m. It also expects adjusted profit of about 55 cents per share, way below the average analyst estimate of 74 cents.

But chief executive Jeff Weiner said: "We enter 2016 with increased focus on core initiatives that will help drive growth and scale across our portfolio."

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