LinkedIn stock just fell badly

Shares of LinkedIn ( Professional social networking company) collapsed nearly 30% in after hours trading Thursday following a disappointing earnings report, effectively shaving off $7 billion from the company's market cap in a matter of minutes.

Linkedln  posted a surprise loss of $8.4 million in the holiday quarter as it continues to invest in new products and services. LinkedIn also forecasted weaker sales for the upcoming quarter and year than Wall Street analysts had expected.

LinkedIn CFO Steve Sordello laid some of the blame for its lower forecast on "current global economic conditions."

Linkedln membership base topped 400 million in the quarter and usage and engagement on smartphones and tablets continues to grow thanks to a redesign of its flagship application.

The fierce selloff of LinkedIn stock is the latest reminder that Wall Street investors no longer have much tolerance for even the slightest signs of weakness from high-valued Internet and technology companies. The stock market has been a non-stop bloodbath this year; patience and optimism are in short supply.

 

Facebook, by comparison, reported flawless earnings last week and quickly overtook Exxon to become the fourth most valuable company in the world by market value.