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LinkedIn shares drop sharply after first-quarter earnings release

May 02, 2013|By Jessica Guynn
  • Flowers are in front of LinkedIn's Mountain View, Calif., headquarters.
Flowers are in front of LinkedIn's Mountain View, Calif., headquarters. (David Paul Morris / Bloomberg )

SAN FRANCISCO -- LinkedIn shares plunged in extended trading after the company reported increased revenue and net income but its outlook fell below Wall Street expectations.

Shares dropped 8% to $185.35.

The online professional networking service said it earned $22.6 million, or 20 cents a share, in the first quarter, up from $5 million, or 4 cents a share, in the same period last year.

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Revenue jumped 72% to nearly $325 million. Analysts had expected revenue of nearly $318 million.

LinkedIn’s stock shot up to its highest level on Thursday, closing above $200. It went public in May 2011 at $45 a share.

For the second quarter, LinkedIn predicted total revenue of $342 million to $347 million, below analyst estimates of $360 million.

Investors are worried about taking a risk on LinkedIn, whose shares have jumped 76% this year.

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