LinkedIn CEO Jeff Weiner said in an interview on Wednesday that some of the company’s bets are starting to pay off. This, he said, is leading him to see a brighter future for the firm.
One of these bets includes a relaunch of the social media platform’s mobile app, he said, which took place in the second half of last year.
“I think we’ve seen stronger-than-expected performance relative to our own plan internally. As the year progresses, we get better visibility into how we’re performing,” Weiner told CNBC’s “Squawk on the Street.”
Weiner explained this following reports from the company that LinkedIn released better-than-expected quarterly results. This also resulted in sending shares of LNKD higher. The solid results from this tech stock were positive news after the company’s shares dropped in February on its bleak outlook for the first quarter of 2016. The company said it expected an adjusted first-quarter earnings number of 74 cents on $861 million in revenue.
Weiner explained in the earnings report that, “As a result of our new mobile experience, members are increasing their activity on LinkedIn, helping drive strong levels of engagement across the platform.” The stock traded more than 2% higher in late-morning Friday. Wall Street experts were mostly pleased with the quarter, with at least a 12 analyst firms increasing price targets on the stock. Piper Jaffray, for example, raised its target to $180 from $175.
Analysts are saying that Traders looking at companies like this in the tech sector should beware of these “earnings sucker’s rallies, “LinkedIn got back on track with a 4% Q1 beat vs the Street and slightly higher Q2 guide,” Piper said in a Thursday note to clients.
“We believe the earnings report in-line with historical comps and a better-than-typical guide should give investors more confidence in LinkedIn’s guidance for the year and derisk numbers for the near-term following the less optimistic commentary on the Talent Solutions segment from last quarter.”