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Why No One Should Be Surprised LinkedIn Got Punished

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Kenny Polcari was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

O'Neill Securities Director of NYSE Floor Operations Kenny Polcari discussed LinkedIn Corp (NYSE: LNKD) on the show following its Q1 earnings report.

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.

Listen to the show here:

Posted-In: Kenny Polcari O'Neill SecuritiesExclusives Trading Ideas Interview


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