Wall Street Watch: LinkedIn Earnings, Facebook’s IPO
Stocks: LinkedIn Growing Gangbusters, Yahoo CEO Under Fire
LinkedIn Corporation (NYSE:LNKD) net income for rose to $5 million (4 cents per share) vs. $2.1 million (0 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter. Investors are cheering. Now, check out Your Cheat Sheet to LinkedIn Earnings >>
Facebook (FB) may sell up to $13.6 billion in stock, including an over-allotment option; its IPO will be priced between $28-$35 per share as announced on Thursday. The company could see a market cap of $77 billion to $96 billion, or as high as 96 times last year’s $1 billion net profit. According to The New York Times, Facebook could allocate 20 percent to 25 percent of its shares to retail investors as it views itself as the “the people’s company.”
Yahoo’s (NASDAQ:YHOO) board will review the alleged false claim that its CEO Scott Thompson has a computer science degree, as listed in company documents. He supposedly only an accounting degree, reported Reuters. The discrepancy came into the open from an activist investor, Dan Loeb.
Wal-Mart’s (NYSE:WMT) board is being sued by a California pension fund for mishandling allegations that officials knew about the Mexico bribery scandal and subsequently covered it up. The lawsuit has claimed “gross misconduct by the company’s executive officers and director.” This the second lawsuit by a shareholder since April.
Economy: Unemployment drops, Eurozone Elections
April unemployment numbers fell to 8.1% percent. Unfortunately, hiring in April also fell.
This weekend France and Greece will hold elections that could affect the eurozone’s austerity measures. French candidate Francois Hollande, who wants to cut down the measures, is favored to win. Meanwhile in Greece, the two status quo parties may have a difficult time grabbing votes to keep the bailout/austerity movement going.
7 Buzzing Stocks: Green Mountain and LinkedIn Climb Higher
American International Group Inc. (NYSE:AIG) shares dropped nearly 3 percent before the opening bell. The insurer reported net income of $3.21 billion ($1.71 per share) for the first-quarter, compared to $1.3 billion (35 cents per share) a year earlier. However, revenue was less-than-expected.
Shares of LinkedIn Corp. (NYSE:LNKD) surged more than 9 percent in early trading. The social network company reported net income of $5 million (4 cents per share) for the first-quarter, compared to $2.1 million (0 cents per share) a year earlier. “LinkedIn’s solid performance in the first quarter built on the company’s momentum in 2011,” said Jeff Weiner, CEO of LinkedIn. “We saw strength across all key metrics from member signups and engagement to significant revenue growth across our three product lines.”
Don’t Miss: Amazon and Apple Exemplify the Future of Retail
Exelon Corp. (NYSE:EXC) shares edged slightly higher despite reporting a decline in first-quarter income. The power generation company earned $200 million (28 cents per share), compared to $668 million ($1.01 per share) a year earlier.
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) shares bounced 2.7 percent on Friday after falling nearly 50 percent the prior day. The company recently reported a weak outlook for the fiscal year during its earnings call. The company now expects to earn $2.40 to $2.50 per share for its full fiscal year on revenue of $3.8 billion to $4 billion. That is below previous estimates of $2.55 to $2.65 per share on revenue over $4.2 billion. Caribou Coffee Co. (NASDAQ:CBOU) shares dropped 10 percent as the company cut its 2012 sales outlook late Thursday.
DigitalGlobe Inc. (NYSE:DGI) shares jumped 17.6 percent in morning trading. The company received an offer by GeoEye Inc. (NASDAQ:GEOY) to by it for $792.3 million in a cash and stock deal. GeoEye is offering DigitalGlobe shareholders a total amount of $17 per share, 26 percent above its Thursday’s closing price.
Investor Insight: Here’s Why Green Mountain’s Cup is Half Empty
6 Radar Stocks: Yahoo! Gets Schooled, Buffett’s Berkshire Disappoints
After closing 7.2 percent higher on Friday, LinkedIn Corp. (NYSE:LNKD) shares edged .26 percent lower in extended trading. The social network company recently reported net income of $5 million (4 cents per share) for the first-quarter, compared to $2.1 million (0 cents per share) a year earlier. “LinkedIn’s solid performance in the first quarter built on the company’s momentum in 2011,” said Jeff Weiner, CEO of LinkedIn. “We saw strength across all key metrics from member signups and engagement to significant revenue growth across our three product lines.”
Yahoo! Inc. (NASDAQ:YHOO) shares fell .33 percent after the closing bell. The company’s “inadvertent error” in a regulatory filing regarding CEO Scott Thompson’s educational qualifications has drawn the ire of activist hedge fund manager Daniel Loeb, giving him more grounds to attack Yahoo’s governance and, specifically, Thompson himself. In a letter to Yahoo’s board, Loeb wrote, “If Mr. Thompson embellished his academic credentials we think that it 1) undermines his credibility as a technology expert and 2) reflects poorly on the character of the CEO who has been tasked with leading Yahoo at this critical juncture. Now more than ever Yahoo investors need a trustworthy CEO.”
Don’t Miss: Amazon and Apple Exemplify the Future of Retail
Berkshire Hathaway Inc. (NYSE:BRKA) reported earnings of $1,615 per class A share, missing expectations of $1,780 per share. Meanwhile, revenue came in at $38.15 billion. The class A shares traded slightly higher, but the class B (NYSE:BRKB) shares fell .51 percent.
Apple Inc. (NASDAQ:AAPL) shares have struggled to find their footing this week. Shares of the tech giant fell almost 3 percent on Friday and almost 6 percent for the week. Since hitting its all-time high of $644, shares are down about 12 percent.
Shares of American International Group Inc. (NYSE:AIG) continued to drop 4.2 percent in late trading. The Treasury department announced a public offering of AIG common stock. The insurer announced it is committed to take $2 billion of the offering sold at the IPO price.
Investor Insight: What Do Americans Think About Gold?