LinkedIn Drops On Rumor Einhorn Is Shorting Shares
LinkedIn (NYSE: LNKD) dipped as much as two percent Tuesday on a rumor that noted short-seller David Einhorn had taken a short position in the company.
LinkedIn shares are up 36 percent in the past month and recently beat second-quarter expectations by a significant margin. But its shares are volatile and the company missed consensus views in two of the past three quarters.
Einhorn, in his quarterly letter to investors last month, said "there are a number of tech stocks caught up in a smaller version of the 1999-2000 Internet bubble and we've created a bubble basket to short them."
Einhorn didn't disclose stocks included in the basket.
As of July 31, short interest represented 5.4 million of LinkedIn's 218.7 million shares outstanding. That's nearly unchanged from mid-July.
LinkedIn traded recently at $218.80, off $0.14.
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