LNKD Down

linkdin

Market leadership has taken it on the chin from Bears. Here’s a closer look at  LinkedIn (LNKD),  a key member of the outperforming group that also includes TSLA, FB and NFLX.

After failing for a couple weeks to make new highs, the stock has recently floundered on heavy sell volume, effectively closing a technical gap and key support zone on the chart. We’re not so interested in buying at these extended, post breakout levels. Though its behavior will be an indicator for other growth stocks ready to breakout.

The Mountain View, CA based company pulls in more than $1B a year operating an online professional network, in case you didn’t know. While free to individual users, it makes half of its sales charging companies to recruit through it, more than a quarter from advertising, and the rest through premium subscription fees.  

For the last quarter over quarter comparison, it grew sales nearly 60% and EBITDA of $158 million for more than 30% growth. No doubt Wall St. has been impressed with its no debt and more than $800 million cash, though return in equity clocks in at a little more than 4%, according to Yahoo! Fn.   

Perhaps we will see another base form in here. 

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