Go 'Neutral' On LinkedIn Before Earnings: Parets
Eagle Bay Capital Founder JC Parets said that there is nothing to do in LinkedIn Corp (NYSE: LNKD) heading into Thursday evening's earnings report. He said that the "price is perfectly priced" when looking at current price relative to the 200-day moving average. The 200-day moving average is at $233.34.
LinkedIn, which is down more than 2.2 percent – or $5.29 – on the trading session, last traded at $226.70.
While Parets reminded the hosts that he did not "flip coins going into earnings anyway," in the case of LinkedIn, the flat 200-day moving average was even more reason to stay away. "It could crash from here. It could explode higher," he said.
When Parets backs the chart out to a longer-term timeframe, he said that the "clear" uptrend is higher, extending for about four years. Over the past 52 weeks, the price has risen 19.7 percent, though prices were up more than 40 percent at points in March and April. Since the last earnings report, prices are down more than 10 percent.
Parets closed by urging the hosts to stay neutral. "I think neutral here is the best bias going forward. I'll be extremely neutral."
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