LinkedIn [NYSE:LNKD] revenue for the Mar 2012 quarter (Q1) was $188.5m, up 101% on $93.9m in Q1 2011, and better than analysts’ average estimate of $178.4m. This was the 7th straight quarter of year-on-year growth in excess of 100%. Membership increased from 150m to 161m. [More]

Net income (GAAP) in Q1 was $5.0m, up 138% from $2.1m in Q1 2011. Non-GAAP income was $16.9m, up 191% from $5.8m in Q1 2011.

Revenue in the Jun 2012 quarter (Q2) is estimated by Linkedin to rise to $210m-$215m, better than analysts’ estimates of $208.4m.

In after hours trading, LNKD rose more than 14% before falling back to $118.65 (+11.51%).

USA MARKET

US economy

• Jobless claims fell to 365,000 in the week ended 28 Apr 2012, down from 392,000. As at 21 Apr 2012 3.28m people are receiving unemployment benefits.
• Retailers reported a slowdown in consumer spending in Apr 2012.

Commodities

• Gold Futures (Jun): down $19.20 to $1,635/oz
• Oil Futures (WTI LSC Jun): down $2.68 to $102.54/barrel.

Treasury yields

• 30-year: 3.12%
• 10-year: 1.93%
• 5-year: 0.82%

Share market indices

Markets are spooked by the ADP payrolls data, concerned that tomorrow’s Department of Labor employment statistics will show a slowdown in growth.

• S+P 500: 1,392 -0.77%
• DJIA: 13,207 -0.47%
• NASDAQ: 3,024 -1.16%

Tech stock news

• Facebook [NASDAQ:FB] Facebook is expected to IPO on 18 May 2012.

  Lead underwriters: Morgan Stanley, J.P. Morgan, Goldman, Sachs & Co.

  Other underwriters: BofA Merrill Lynch, Barclays Capital, Allen & Company LLC, Citigroup, Credit Suisse, Deutsche Bank Securities, RBC Capital Markets, Wells Fargo Securities

  Offer size: 337.4m shares (~53% primary / ~47% secondary)
  Greenshoe: 50.6m shares (15%) (~12% primary / ~88% secondary)
  IPO filing range: $28 – $35
  IPO launch date: 3 May 2012
  IPO pricing date: 17 May 2012

• The Motley Fool appears undecided on IPOs. On 26 Apr 2012 TMF noted that IPOs are roaring to life (“IPOs Bounce Back”). A few days later, on 1 May 2012 TMF concluded “IPOs Are Dead Again”.
  Lloyd says: You place your bets but someone else spins the wheel!

Tech stock price movements

• Substantial rises (more than 2.0%)
  • LinkedIn [NYSE:LNKD]: up 2.83% to $109.41. In after hours trading LNKD rose 11.51% to $118.65
• Substantial falls (more than 2.0%)
  • Netflix [NASDAQ:NFLX]: down 7.61% to $75.97.
    Lloyd says: A big thankyou and steak lunch to my business partner, Anita Eglitis, for talking me out of a speculative gamble on this stock a month ago!
  • Splunk [NASDAQ:SPLK]: down 7.36% to $32.68. (IPO price: $17)
  • Research in Motion [NASDAQ:RIMM]: down 5.94% to $12.04
  • Micron Technology [NASDAQ:MU]: down 5.1% to $6.47
  • Groupon [NASDAQ:GRPN]: down 2.55% to $10.31

PORTFOLIO

NASDAQ

• Apple [AAPL] $581.82 -0.70%
• Amazon [AMZN] $229.11 -0.49%
• Google [GOOG] $611.02 +0.61%

NYSE

• Linkedin [LNKD] $109.63 +3.03%
• VMware [VMW] $112.43 -1.91%

AUSTRALIAN CURRENCY

Portfolio valuation rate (USD/AUD): 1.0312

EUROPE

• Eurozone: Eurozone unemployment has risen to a record level of 10.9% in Mar 2012, up from 10.8% in Feb 2012, and a full point higherr than 9.9% in Mar 2011. [More] This is likely to have a major bearing on politics throughout the EU (including UK) – especially France – about threats to growth from austerity programs.
• Greece: Standard & Poor’s has upgraded Greece from default to CCC.

USA MARKET

Economy

• ADP Employer Services payroll data suggests that only 119,000 jobs were added in Apr 2012 (down from 201,000 in Mar 2012) with 5,000 jobs lost in manufacturing.

Commodities

• Gold Futures (Jun): down $8.40 to $1,654/oz
• Oil Futures (WTI LSC Jun): down $0.94 to $105.22/barrel.

Treasury yields

• 30-year: 3.12%
• 10-year: 1.93%
• 5-year: 0.82%

Share market indices

• S+P 500: 1,402 -0.28%
• DJIA: 13,269 -0.08%
• NASDAQ: 3,060 +0.31%

Tech stock news

• RIM [NASDAQ:RIMM] fell 5% today.
• Facebook [NASDAQ:FB] is expected to IPO on 18 May 2012.

PORTFOLIO

NASDAQ

• Apple [AAPL] $586.00 +0.66%
• Amazon [AMZN] $230.25 +0.09%
• Google [GOOG] $607.26 +0.47%

NYSE

• Linkedin [LNKD] $106.45 -0.37%
• VMware [VMW] $114.61 +1.75%

AUSTRALIAN CURRENCY

Portfolio valuation rate (USD/AUD): 1.03730

USA MARKET

Economy

• Manufacturing activity rose in Apr 2012. Contrary to yesterday’s indication from the Institute for Supply Management-Chicago Inc’s barometer that manufacturing fell in Apr 2012, its factory index at 54.8 indicates that in Apr 2012 manufacturing rose at its fastest pace since jun 2011! [More] Elsewhere:
  • China’s manufacturing has also grown to its highest rate in a year …
  • … but UK’s manufacturing index for Apr 2012 fell to its lowest level since 2009.
• New car sales in Apr 2012 were mixed, with imports outselling Ford and GM:
  • VW: +31%
  • Chrysler: +20%
  • Toyota: +11.6%
  • Honda: +9.2%
  • Ford: -5%
  • GM: -8.2%
• Today’s markets may have been slightly affected by May Day closures in Mexico and Brazil, some European countries (e.g. Germany, France), and Asia (e.g. Hong Kong, Singapore, China).

Commodities

• Gold Futures (Jun): down $1.80 to $1,662/oz
• Oil Futures (WTI LSC Jun): up $1.29 to $106.16/barrel.

Treasury yields

• 30-year: 3.15%
• 10-year: 1.95%
• 5-year: 0.83%

Share market indices

• S+P 500: 1,406 +0.57%
• DJIA: 13,280 +0.50% (4-year high)
• NASDAQ: 3,050 +0.13%

PORTFOLIO

NASDAQ

• Apple [AAPL] $582.13 -0.32%
• Amazon [AMZN] $230.04 -0.80%
• Google [GOOG] $604.43 -0.07%

NYSE

• Linkedin [LNKD] $106.68 -1.63%
• VMware [VMW] $112.61 +0.80%

AUSTRALIAN CURRENCY

Portfolio valuation rate (USD/AUD): 1.03820

EUROPE

Spain has joined the UK in a recession. Spain’s GDP fell 0.3% in the Mar 2012 quarter. This follows a similar 0.3% fall in the Dec 2011 quarter. [More]. On 24 Apr 2012 the UK announced it had entered a recession with a fall in its GDP of 0.2% in the Mar 2012 quarter.

USA MARKET

Economy

• Household consumer spending rose 0.3% in Mar 2012 and the Feb 2012 growth estimate was raised to 0.9% from an earlier estimate of 0.8%. The Mar 2012 growth number was below expectations (0.4%).
• Manufacturing activity fell in Apr 2012. The Institute for Supply Management-Chicago Inc’s barometer decreased sharply to 56.2 in Apr 2012 from 62.2 in Mar 2012. The Apr 2012 figure of 56.2 was below the range of economists’ estimates (58 – 62.9). [More]

Commodities

• Gold Futures (Jun): down $0.60 to $1,664/oz
• Oil Futures (WTI LSC Jun): down $0.06 to $104.87/barrel.

Treasury yields

• 30-year: 3.11%
• 10-year: 1.92%
• 5-year: 0.81%

Share market indices

• S+P 500: 1,398 -0.39%
• DJIA: 13,214 -0.11%
• NASDAQ: 3,046 -0.74%

Tech stock news

• Apple’s [NASDAQ:AAPL] low taxation has an increased public profile.

PORTFOLIO

NASDAQ

• Apple [AAPL] $584.24 -3.15%.
• Amazon [AMZN] $231.90 +2.22%
• Google [GOOG] $605.23 -1.61%

NYSE

• Linkedin [LNKD] $108.45 -1.16%
• VMware [VMW] $111.77 -0.57%

AUSTRALIAN CURRENCY

Portfolio valuation rate (USD/AUD): 1.0472

The Reserve Bank of Australia announced a 50 basis point reduction in its official cash rate, from 4.25% to 3.75%.

USA MARKET

Economy

• The US economy grew 2.2% (annual rate) in the Mar 2012 quarter (Q1 2012).

Commodities

• Gold Futures (Jun): up $4.30 to $1,665/oz
• Oil Futures (WTI LSC Jun): up $0.38 to $104.93/barrel.

Treasury yields

• 30-year: 3.12%
• 10-year: 1.94%
• 5-year: 0.83%

US market indices

• S+P 500: 1,404 +0.27%
• DJIA: 13,228 +0.18%
• NASDAQ: 3,069 +0.61%

Tech stock news

• Standard & Poor’s has cut Nokia’s bond rating to junk status.
• Expedia [NASDAQ:EXPE] was up 23.54% to $40.31 on earnings and revenue in the Mar 2012 quarter.
• TripAdvisor [NASDAQ:TRIP] (an EXPE spinoff) was up 7.24% to $36.87.
• Amazon [NASDAQ:AMZN] was up 15.75% to $226.85 by beating analysts’ earnings expectations. See yesterday’s “AMZN Q1″ post.

PORTFOLIO

NASDAQ

• Apple [AAPL] $603.00 -0.77%
• Amazon [AMZN] $226.85 +15.75%
• Google [GOOG] $614.98 -0.08%

NYSE

• Linkedin [LNKD] $109.72 +4.26%
• VMware [VMW] $112.41 +1.34%

AUSTRALIAN CURRENCY

Portfolio valuation rate (USD/AUD): 1.0420

Amazon [NASDAQ:AMZN] reported its Mar 2012 quarter (Q1) earnings after regular trading closed. EPS were $0.28, down 36% from $0.44 in Q1 2011. Operating income was $192m on revenue of $13.2bn, down 40.4% from $322m on revenue of $9.86bn in Q1 2011. What we’re seeing here is Amazon growing revenue (up 33.9%) at the expense of margins.

The EPS result was better than the $0.07 expected by analysts, and AMZN rose 14.26% to end post market trading (on high volume) at $222.15.

SALES REVENUE

SEGMENT OPERATING INCOME

(% of sales)

GUIDANCE

Amazon forecasts for Q2 include a 20% – 34% increase in net sales revenue to $11.9bn – $13.3bn.

EUROPE

• France

  Unemployment has risen for the 11th straight month. In Mar 2012 unemployment rose to 2.88m.

• Spain

  Standard & Poor’s has cut Spain’s credit rating 2 notches to BBB+, on concern that Spain’s economy will contract 1.5% in 2012 (rather than the forecast 0.3% growth) and the concern that Spain’s government will need to borrow to support its banking sector (based on IMF advice earlier this week). Spain’s unemployment rate is now 24.4%, up from 22.9% in Dec 2011.

USA MARKET

Commodities

• Gold Futures (Jun): up $18.20 to $1,661/oz
• Oil Futures (WTI LSC Jun): up $0.43 to $104.55/barrel.

Treasury yields

• 30-year: 3.12%
• 10-year: 1.95%
• 5-year: 0.83%

US market indices

• S+P 500: 1,399 +0.63%
• DJIA: 13,205 +0.87%
• NASDAQ: 3,051 +0.69%

Tech stock news

• LinkedIn [NYSE:LNKD] has introduced a free iPhone and iPad app [More].

PORTFOLIO

• NASDAQ

  • Apple [AAPL] $607.70 -0.38%
  • Amazon [AMZN] $195.99 +0.81%. Amazon rose 14.39% to $222.40 in post market trading following its Q1 earnings report and Q2 guidance.
  • Google [GOOG] $615.47 +0.94%

• NYSE

  • Linkedin [LNKD] $105.24 +2.32%
  • VMware [VMW] $110.92 +3.96%

AUSTRALIAN CURRENCY

Portfolio valuation rate (USD/AUD): 1.0460

USA MARKET

• The Federal Reserve has revised its estimates for the US economy in 2012:
  • GDP: Increased from 2.4% to 2.9%
  • Inflation: Increased from 1.9% to 2.0%
  • Unemployment: Increased from 7.8% to 8.0%

  The Federal Reserve did not change its interest rate – currently near zero.

Commodities

• Gold Futures (Jun): down $1.50 to $1,642/oz
• Oil Futures (WTI LSC Jun): up $0.57 to $104.12/barrel.

Treasury yields

• 30-year: 3.15%
• 10-year: 1.98%
• 5-year: 0.84%

US market indices

• S+P 500: 1,389
• DJIA: 13,070
• NASDAQ: 3,025

PORTFOLIO

• NASDAQ

  • Apple [AAPL] $610.00 +8.87% ($49.72)
  • Amazon [AMZN] $194.42 +2.15%
  • Google [GOOG] $609.72 +1.41%

• NYSE

  • Linkedin [LNKD] $102.64 +4.66%
  • VMware [VMW] $106.73 +3.14%

AUSTRALIAN CURRENCY

Portfolio valuation rate (USD/AUD): 1.0401