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LinkedIn shares drop 40%, erasing $10B of company's value

businessinsider.com

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Re: LinkedIn shares drop 40%, erasing $10B of company's value

#11

Post by csomar »

Inthenameofmine wrote: post #4

Sounds like the bubble is bursting. The established companies whose valuation was based on multiples of future growth are taking the hit, getting in line with more traditional multiples of current revenue.

The bubble has been bursting in the last few years (according to commenters) but the overall stocks/valuations were going up.

Re: LinkedIn shares drop 40%, erasing $10B of company's value

#12

Post by hardwaresofton »

jacquesm wrote: post #9

Linkedin is a terrible company, I've always resisted making a profile there because I think that to support a company like that in name is to give them a free pass on their despicable behavior. No matter though, I still receive their spam on a daily basis, but that's nothing a filter rule can't take care of.

Some examples? I can't remember any big scandals...

Re: LinkedIn shares drop 40%, erasing $10B of company's value

#15

Post by jldugger »

Not super surprising. The majority of their revenue comes from recruiters, and I expect the majority of paying recruiters are in tech. So any downswing in tech will be substantially felt. Especially for a firm whose earnings are negative, losing growth is bound to be a problem.

On a related note, how much of Facebook's mobile revenue is for mobile apps? Should we expect a similar decline as the economy declines further?

Re: LinkedIn shares drop 40%, erasing $10B of company's value

#16

Post by lukasm »

sumitgt wrote: post #6
darkhorn wrote: post #3

Because of Facebook Work I think. https://work.fb.com/

I don't think Facebook for work competes with LinkedIn's core business at all. It's a different product.

- The overlap is small for now, but the threat is serious.

- The growth is slowing down

- Every product attempts to expand until it has API. Those products which cannot so expand are replaced by ones which can. Linked closed the API.

Re: LinkedIn shares drop 40%, erasing $10B of company's value

#17

Post by frandroid »

tptacek wrote: post #7
Inthenameofmine wrote: post #4

Sounds like the bubble is bursting. The established companies whose valuation was based on multiples of future growth are taking the hit, getting in line with more traditional multiples of current revenue.

https://hn.algolia.com/?query=bubble%20burst&sort=byDate&pre...

What, only 50 pages of occurrences?

Re: LinkedIn shares drop 40%, erasing $10B of company's value

#18

Post by RyJones »

hardwaresofton wrote: post #12
jacquesm wrote: post #9

Linkedin is a terrible company, I've always resisted making a profile there because I think that to support a company like that in name is to give them a free pass on their despicable behavior. No matter though, I still receive their spam on a daily basis, but that's nothing a filter rule can't take care of.

Some examples? I can't remember any big scandals...

The only one that I can remember was the email MITM "service".

Re: LinkedIn shares drop 40%, erasing $10B of company's value

#20

Post by mc32 »

jldugger wrote: post #15

Not super surprising. The majority of their revenue comes from recruiters, and I expect the majority of paying recruiters are in tech. So any downswing in tech will be substantially felt. Especially for a firm whose earnings are negative, losing growth is bound to be a problem. On a related note, how much of Facebook's mobile revenue is for mobile apps? Should we expect a similar decline as the economy declines furth…

I'm sympathetic to your post, except the last bit. Where do you see the [broad] economy declining, only sector I know declining is energy.
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