LinkedIn gains highlight tech sector rally
SAN FRANCISCO (MarketWatch) -- Shares of
The shares rallied 16% to close at $108.51 after the social-networking company (LNKD) reported stronger-than-expected revenue and raised its full-year outlook late Thursday.
The gains wiped out LinkedIn's losses for the week as the stock got caught in the downward spiral of other social-media shares. Shares of
LinkedIn, which also offers services that help companies attract and recruit employees, may be getting a lift from the stronger-than-expected employment numbers. The government said Friday that nonfarm payrolls rose by 163,000 in July, exceeding market expectations.
"We remain positive on LinkedIn's business and believe few, if any, challengers could compete effectively," Needham & Co. analyst Kerry Rice said in a note. "Despite the global macro challenges, we believe LinkedIn is gaining share as enterprises shift their recruiting budgets away from traditional channels."
The jobs reports powered a broad market rally in which the Dow Jones Industrial Average
added 217 points. Blue-chip tech components
The Nasdaq Composite Index (COMP) rose 2% to end at 2,967.90, as the benchmark closed the week up 0.3%. The Morgan Stanley High Tech 35 Index (MSH) gained 3.2%, while the Philadelphia Semiconductor Index (SOX) rose 2.3%.
The sector also got a lift from