LinkedIn announced Thursday that its sales and earnings in the second quarter had beaten analysts expectations. How did investors react? They sold big-time.
Shares of LinkedIn fell $21, or just over 10%, on Friday to just over $205. That’s the company’s biggest one day stock dive since the end of April, when the shares fell nearly $50 in one day.
What happened? Like many résumé writers, LinkedIn seems to have taken some liberties to make its earnings seem more impressive than they actually were.
First of all, the company’s earnings beat was manufactured — LinkedIn told analysts to lower their expectations at the end of April, so when the earnings came out, they were actually better than the most recent expectations, but lower than what people thought the company would earn a few months ago.
Second, the company said by its metrics it earned $71 million in the second three…
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