(ReportChicago.com/Correspondent News) – As with all short and long term investment goals, dynamic price expectations cause different reactions from Wall Street. SunTrust lowered its price target of Linkedin (LKND) to $250 from $275 with a “buy” rating, and Brean lowered its price target to $172 from $208 with a “sell” rating.
Both firms cited the same information regarding LinkedIn’s outlook after the website issued a weak second quarter report late Thursday.
For the second quarter of 2015, LinkedIn is expecting earnings of 28 cents per share. Their targeted revenue during the same period is expected to be between $670 million and $675 million.
Analysts were expecting earnings of 74 cents per share on revenue of $717.5 million.
LinkedIn is a professional network on the Internet with about 300 million members in more than 200 countries.
The company offers individuals and corporations a platform to manage professional identity. In addition, people can build and engage with other professionals and their networks. LinkedIn is based in Mountain View, CA.
While stock analysts view LinkedIn as a commodity and bank their portfolio performance on the bottom line, the users of LinkedIn see it differently.
“I invest a more valuable asset than money into LinkedIn,” commented Doug Crowe, founder of AuthorityFusion, a branding and PR company. “Our clients invest a consistent amount of a much more valuable asset…their time,” stated Crowe.
Mainstream users once viewed LinkedIn as a high profile resume bulletin board. However, for many key executives, marketers and PR agencies, LinkedIn has become a virtual, professional, networking meeting. With groups targeting specific industries and demographics, many users see it as a way to connect with ideal clients, not as a stock in their portfolio.
“The vast majority of users still see it as a digital resume, but when you tell a compelling story in your profile, use the proper keywords and professionally connect with your target audience, the right connections can come swiftly,” said Crowe. “I encourage my clients to not only look for their target customers, but look at their own network as a resource for others. It’s easier to approach someone with the gift of a referral, then ask for one when starting a relationship.”
While paying it forward makes sense and most business owners agree in principle, it is a practice that is rarely done. “How many emails have you received, out of the blue, with someone offering a referral to you?”questioned Crowe.
While LinkedIn struggles to increase its value on Wall Street, savvy users like Doug Crowe continue to pay it forward, building strong connections off of LinkedIn as rapidly as possible. “I have confidence in the platform. It does not feel like a future version of MySpace. However, the main idea is to take online conversations into offline relationships. That where you see the power and speed of LinkedIn. I’m excited to not only use it myself, but share some of my key strategies on our ‘Zero Pitch’ webinar series.”
How LinkedIn harnesses that speed in the coming 12-18 months may very well determine if its future is valuable networking hub rather than just a professional version of Facebook.