Do you smell that smell? I believe a degree of odiferous air has been let go from the social media bubble.
According to USA TODAY, LinkedIn reported a 46% rise in first-quarter revenue, to $473.2 million, but a loss of $13.3 million. The news sent LinkedIn shares down 2% in after-hours trading, to $159.02. Its stock, meanwhile, is down about 40% from its all-time high of $257.56 per share in September.
Warwick Business School Professor, Mark Skilton, believes the problem is lack of attention to mobile. “LinkedIn seems to be treating the mobile trend as just another channel but this might prove problematic as members seek consistent multi-device experience.”
That’s one theory. I have a different evaluation. People may be beginning to realize that the never-ending act of promoting oneself in digital channels is tiresome in the extreme.
Twitter Inc., LinkedIn Corp. and Yelp Inc.all have lost more than 20 per cent of their market value this year. Only Facebook, which is up 2.6 per cent, escaped the downward trend.
The Nasdaq Internet Index as a whole is down by almost 20 per cent, hovering close to the threshold for a bear market.