Why No One Should Be Surprised LinkedIn Got Punished

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 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 TWTR, for example, and LinkedIn are not like International Business Machines Corp. IBM, The Coca-Cola Co KO, or General Electric Company 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: