LinkedIn was a scary case earlier this year. In February, the stock plummeted more than 40% in just one single day! That made many investors a bit sceptical. Some investors had panic and sold with both hands. Some had a Hold strategy.
Those who was cold enough to hold saw the stock come back. Later on, the stock went up 46% in one single day. What happened? Investors jumped in on very good news. That day, Microsoft announced that it has agreed to acquire the professional networking platform in an all-cash deal worth $26,2 billion.
Microsoft is paying $196 a share for LinkedIn, and LinkedIn`s official vote regarding the Microsoft acquisition will take place on August 19, 2016. Microsoft sold $20 billion in debt on Tuesday to fund the deal.
You cannot compare LinkedIn with Facebook but if you do, you will a different story with stagnant user growth. That being said, LinkedIn saw the largest growth in cumulative members since 2014 in the first quarter of 2016. It was up 19% to 433 million.
Talent Solutions and Marketing Solutions have remained LinkedIn`s strongest segments, which is growing 41% and 29% last quarter.
s report on Thursday will be one of the last quarterly reports as a publically traded company after Microsofts bid last month.
Revenue is expected to come in at $902 million with an earnings per share of $0,81. This is an increase of 47% in earnings and 26% in sales compared to last year at the same time.
LinkedIn will report on August 4, after the market closes.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.