LinkedIn slumps 15% on weak outlook

BBC News - Networking site LinkedIn shares fall 15% on weak outlook6 February 2014Last updated at 20:30 ETShare this pageDeliciousDiggFacebookredditStumbleUponTwitterEmailPrintNetworking site LinkedIn shares fall 15% on weak outlook

LinkedIn's chief executive JeffWeiner says the company is looking for new sources of growthContinue reading the main storyRelated StoriesUsing social media to find a new job WatchWhy 50 is the magic number for job-hunting Botox your CV and online profileShares in professional networking service LinkedInslumped by as much as 15% in after-hours trading after it posted a weaker-than-expected outlook.

LinkedIn expects first quarter revenue of up to $460m (?282m), which is below analyst projectionsfor $469m.

The company has also seen sales growth slow for the fourth straight quarter.

Its poor showing comes after Twitter saw a steep sell-off in its stock following its disappointing firstpublic earnings report.

LinkedIn chief executive Jeff Weiner said the company is currently looking for new sources ofgrowth.

"We are investing significantly in a focused number of long-term initiatives that will allow us torealize our vision to create economic opportunity for every member of the global workforce," he saidin a statement.

The California-based company also plans to further develop its mobile application and strengthen itsjobs vacancy business.

About one quarter of LinkedIn's traffic now comes from mobile devices.

Mr Weiner also said they plan to expand into China, the world's most populous country, and recentlyappointed a new executive to head operations there.

LinkedIn is the only major US social network not blocked in China.

New purchase LinkedIn is theonly major US social network not blocked in China.LinkedIn also announced on Thursday that it had bought data analytics company Bright Media forabout $120m.

Bright Media is a two-year-old start-up which uses algorithms to match job candidates withprospective employers.

Its founder Eduardo Vivas said in a statement that they were excited to join LinkedIn.

"The company shares a similar vision and is equally obsessed about using data and algorithms toconnect prospects and employers," he said.

LinkedIn makes the most of its money from selling service subscriptions to job recruiters, who usethe website as a database for potential candidates.

Many other social networking sites such as Twitter and Facebook depend on advertising sales.

LinkedIn shares have surged almost fivefold since it went public in the US in mid-2011.

http://www.bbc.co.uk/news/business-26078678