LinkedIn After the Plunge: Is It a Buy?
Tracey Ryniec and David Bartosiak, Stock Strategists at Zacks Investment Research, discuss LinkedIn (LNKD) after the stock plunge.
Even though LinkedIn beat the Zacks Consensus Estimate, shares fell over 40% on the news after it guided 2016 lower than expected. Shares have continued to fall since then, hitting fresh 52-week lows.
Analysts have been cutting estimates for 2016 and 2017, which is why it's a Zacks Rank #5 (Strong Sell). But the company still has growth in its favor and barriers to entry.
David examines the chart. Does he see further weakness or is this the worst of it?
Based on the forward estimates of the Street, Tracey says its trading at "only" about 33x.
If the Zacks Rank improves, will Tracey and David be jumping in to buy the shares?