LinkedIn and Facebook Part Ways in 2013
Stocks rallied across the board this week, as Congress finally put together a fiscal cliff deal. All three major U.S. indices climbed higher and some of last year’s worst Internet stocks even managed to reboot. However, one popular networking giant is lagging behind.
Shares of LinkedIn (NYSE:LNKD) dropped more than 2 percent on the first trading day of the new year and could never recapture its December 31 closing price above $114 to close out the trading week. The world’s largest professional network on the Internet missed the fiscal cliff celebration rally by receiving a downgrade from Barclays Capital. Analyst Mark May cut his rating from Overweight to Equal Weight, while keeping his price target on shares at $125.
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May is still bullish on LinkedIn’s business model, but believes upside is limited. He explains in a research note, “The stock has significantly outperformed both the market and peers over the past 12 months, and we remain positive on both the short-term Q4 as well as the long-term outlook…