Respondents also expect household spending growth to be well ahead of income. While inflation expectations have declined, the median one-year-ahead expected earnings growth remained unchanged at 3% in August. The declines in housing prices and rents align with survey data released by Fannie Mae last week.Ĭonsumers were more optimistic about their future household income and financial situations, but these gains still fall short of inflation. Home-price expectations have now fallen by nearly two-thirds since the April 2022 reading of 6%.” “The decline was broad based across demographic groups and geographic regions. “Median home-price expectations declined sharply by 1.4 percentage points to 2.1%, its lowest reading since July 2020,” according to the report. US inflation expectations for petrol price increases also continued to ease, with households now expecting them to be roughly unchanged a year from now, the New York Fed survey showed.Įxpectations about year-ahead price changes for food fell by 0.8 percentage point to 5.8%, and 0.3 percentage point for rent to 9.6%.Įxpectations for the housing market, which had been experiencing sharp price increases, but has cooled in recent months, also moderated. They are expected to deliver their third consecutive 75-basis-point hike when they meet next week. US central bankers, who aim for 2% inflation, are increasing interest rates rapidly to curb the hottest inflation in almost 40 years. It was the fourth straight monthly decline in three-year ahead inflation expectations, which have fallen from a 4.2% peak in September and October 2021.
On a five-year horizon, consumers now expect 2% inflation, versus 2.3%. The outlook for inflation one year ahead declined to 5.7% from 6.2% in July. This provides policy makers with good news as they battle to curb price pressures.Įxpectations for US inflation three years ahead fell to 2.8% in August, from 3.2% the previous month and 3.6% in June, according to the New York Fed’s monthly Survey of Consumer Expectations released on Monday. LinkedIn shares have lost nearly a quarter of their value in the last three months.NEW YORK: Consumer expectations for US inflation over the coming years is declining sharply, says the latest survey by the Federal Reserve Bank (Fed) of New York. “Given those macro concerns and LinkedIn’s recent execution issues, we expect investors will demand financial outperformance before there is meaningful recovery in LNKD’s multiple,” Goldman Sachs analysts wrote in a client note. LinkedIn has been spending heavily on expansion by buying companies, hiring sales personnel and growing outside the United States, but is now facing pressure in Europe, the Middle East, Africa and Asia-Pacific due to macro-economic issues.
Facebook, Alphabet and Inc are better picks for investors than LinkedIn, Evercore analysts wrote.
LinkedIn should be trading at $71.79, a 35% discount to the stock’s Friday’s low of $75.54, according to StarMine’s Intrinsic Valuation model, which takes analysts’ five-year estimates and models the growth trajectory over a longer period.
“We were wrong,” they said in a client note.Īs of Thursday, LinkedIn shares were trading at 50 times forward 12-month earnings versus Twitter’s 29.5 times, Facebook’s 33.8 and Alphabet’s 20.9, making it one of the most expensive stocks in the tech sector.Įven after the selloff, LinkedIn’s shares may still be overvalued, according to Thomson Reuters StarMine data. RBC analysts said they had thought LinkedIn was on the cusp of “fundamentally positive” change. Underscoring the slowdown in growth, LinkedIn said online ad revenue growth slowed to 20% in the fourth quarter from 56% a year earlier. “This would imply that LinkedIn will grow around 15% in 2017 and 10% in 2018,” the Mizuho analysts said. LinkedIn forecast full-year revenue of $3.60-$3.65bn, missing the average analyst estimate of $3.91bn, according to Thomson Reuters I/B/E/S. At least 22 brokerages cut their price targets on the stock, with RBC slashing its target by almost half to $156. Raymond James, Cowen and Co, BMO Capital Markets, JP Morgan Securities, RBC Capital Markets and Suntrust Robinson also downgraded the stock. Mizuho downgraded the stock to “neutral” and slashed its target price to $150 from $258. “With a lower growth profile, we believe that LinkedIn should not enjoy the premium multiple it has grown accustomed to,” Mizuho Securities USA Inc analysts wrote in a note.
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