LinkedIn Falls Despite Huge Market Rally
Shares of LinkedIn (NYSE: LNKD) traded down on Wednesday despite a major market rally in the wake of a deal to avert the fiscal cliff. Late on Wednesday, the stock was down almost three percent.
This compared to a rally in the broader market which had pushed the Dow up over 235 points. The Nasdaq had climbed more than 2.50 percent on the day.
LinkedIn, however, fell at the opening of trade and has remained under pressure after analysts at Barclays downgraded the stock to equal weight from overweight. Analyst Mark May cited the stock's rich valuation in light of a run-up in the share price over the last year when LNKD added more than 77 percent.
May wrote that "with shares now trading at a premium to peers and near our 12-month price-target of $125, we believe our bullish outlook is largely factored in." The stock currently trades at a nosebleed forward P/E of almost 87.
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