Why No One Should Be Surprised LinkedIn Got Punished
Polcari noted that financial results for high-growth stocks like LinkedIn are very difficult to forecast and when they miss expectations the stocks get punished “tremendously” in the market.
Names like Twitter Inc (NYSE: TWTR), for example, and LinkedIn are not like International Business Machines Corp. (NYSE: IBM), The Coca-Cola Co (NYSE: KO), or General Electric Company (NYSE: GE), according to Polcari, which “are are big, blue-chip ‘Americana’ names that have a product, that have a history, that have [consistent] revenues.”
Polcari said that investors in stocks such as LinkedIn must understand the risk and should not be surprised when the companies miss expectations and get punished.
LinkedIn recently traded at $200.74, down 20.38 percent.
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