I'm always astounded to hear from technical recruiters who still use the demonstrably slow and spammy networking offered by LinkedIn.   My experience with it reflects its stock performance today (down 40%), and its faked invitation scheme that bubbled it up has popped loudly and badly.


James Cakmak, Monness Crespi Hardt (downgraded to neutral from buy, price target $192): Part of this is expectations related, but the other part is that this business has significantly less consistency than expected, as the sensitivities of the model were not fully appreciated.  Looking forward, momentum in field sales for Talent Solutions, growing spend for Sponsored Updates, and still decent growth in Sales Navigator do give reason for optimism.  But quite frankly, even if upside is delivered, our confidence in our estimates has diminished, especially given less ability to navigate through global macro challenges with secular tailwinds than expected.  We still very much appreciate LinkedIn as a service, but our declining conviction in our estimates and the multiple now place us on the sidelines, despite the material correction in the share price following the results.