What if you see your $10 billion suddenly vanishing before your eyes? That’s what exactly happened when LinkedIn’s stock fall down 44 percent after releasing its quarterly financial report last week. The stock crumbled 9 percent additional on Tuesday.
The whole scenario was quite unanticipated and shocking for the LinkedIn officials, and especially for LinkedIn Chief Financial Officer Steve Sordello.
“We were pretty surprised at the magnitude of what we saw,” Sordello proclaimed at the Goldman Sachs Technology and Internet Conference in San Francisco on Tuesday. “We really haven’t seen anything fundamentally change in the business,” he added.
Sordello revealed that LinkedIn has decided to discontinue certain aspects of its Bizo business. Bizo is a business marketing company that was acquired by LinkedIn about 2 years ago, and it was highly expected that Bizo will turn into a billion-dollar business by 2017.
The CFO said there has been a little bit of macro corn more than as it was three months before. The drubbing inflicted by Wall Street on LinkedIn’s stock was also surprising for the latter.
When asked about the weaker-than expected revenue forecast of LinkedIn, Sordello said, “”Q4, we actually had a pretty strong quarter.” But he noted that there has been a shift in sentiment and LinkedIn was cognizant of this.