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

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

#51
post #39

LinkedIn is the king of "dark patterns" UI - every part of their website is optimized to trick you into doing something you have no intention of doing.

Absolutely. Every time I log on, I feel like I'm going to accidentally email my entire contact list.

I did that one time! I changed my title on my profile. It emailed everyone I know sayin I got a promotion :-(

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

#52

Just another reminder to never ever build your company for Wall street. In 2004, Netflix went from 40 to 2 in 6 months. Amazon from 89 to 5. There are entirely zero competitors to Linkedin right now (FB is nowwhere in the space). And while i agree the product has stagnated a bit - this in my view is another example of Wall Street's insanity. (and no, i don't own any shares :)

No sure I understand. Wall Street had certain expectations of LinkedIn's growth. That was reflected in the stock price.

I was incorrect. Q4 earnings were great, it was the fact that LinkedIn released 2016 guidance that was far below market expectations.

[LinkedIn released their earnings and they were way below expectations, so the stock took a massive hit.]

Does that seem unfair to you?

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

#53
Years ago after reading this I was so disgusted at LinkedIn I closed my account.

They have a pay for placement scheme with both employees and employers. They tell employers, "hey pay money and we'll give you top candidates", then serve candidates who have themselves paid for placement.

http://www.pbs.org/newshour/making-sense/ask-the-headhunter-...

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

#54

Just another reminder to never ever build your company for Wall street. In 2004, Netflix went from 40 to 2 in 6 months. Amazon from 89 to 5. There are entirely zero competitors to Linkedin right now (FB is nowwhere in the space). And while i agree the product has stagnated a bit - this in my view is another example of Wall Street's insanity. (and no, i don't own any shares :)

FB is "nowwhere" in the space? as in, they are "now" in the space "where"? have you heard of facebook at work?

(and yes, you are dumb :)

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

#55
Lots of angry sentiment towards this company here. I understand it doesn't necessarily bring this demographic as much value since most here are probably happily employed and don't need it. There's plenty of others who count on a service like LinkedIn, which doesn't have a good comparison (e.g. Twitter to Facebook).

Personally, I've found value in it from the potential clients I've received (I'm a contractor) and the ability to look up just about anyone I may need to do business with. I use it professionally to get an overview of others like I use Wikipedia to get an overview of a topic.

I do know they have room to improve. I've been using the service since 2006 and have seen all manner of their silly practices. But as a well-known, professional network with a large userbase, I have yet to find a rivaling alternative.

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

#57
post #11

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.

What we're seeing is a slow-mo burst. The outer balloon shell has given way and has left the inner water ball still, albeit briefly, intact. Only a matter of time before we all take a bath.

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

#60

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.

While I agree with you, I would say that bubble bursting is more synonymous with larger disasters like the housing crash in 08 or the Dotcom bust in 2000. In my opinion what's happening with overvalued companies is more of a market correction. To me it doesn't seem like people are in panic, people are just saying things along the lines of "well yeah, they were overvalued" and they move on.
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