LinkedIn shares dropped 43.6% in a single day after the company’s February 2016 earnings report. The fall took the stock to $108.38 per share and erased about $10 billion in market capitalization.
The report intensified investor concerns about LinkedIn’s growth outlook and future revenue performance. The reaction was especially severe because the company’s valuation depended heavily on expectations for continued rapid expansion in recruiting, advertising, and premium subscriptions.
The drop is often confused with LinkedIn’s later acquisition by Microsoft. Microsoft announced its $26.2 billion purchase in June 2016, several months after the plunge, offering $196 per share. LinkedIn’s stock traded under the ticker LNKD until Microsoft completed the acquisition in December 2016.