LinkedIn, Twitter and Facebook Suffer Losses in After-Hour Trading

Shares of a business-oriented social networking service LinkedIn Corp. dropped 21% in after-hour trading on Thursday.

The company suffered a fall in their shares after it gave a disappointing outlook regarding its second quarter.

Twitter, the famous social networking site lost 23% of its value in this week till Thursday. The messaging service on Tuesday reported its revenue.

The outlook offered by Twitter saddened the market experts and its shareholder, as its outlook fell short of Wall Street's expectations.

In addition, the company's investors were upset when Twitter's earnings report came out inadvertently nearly an hour ahead of schedule.

The steep decline came at a time when the tech-heavy Nasdaq was going through a bad time. Nasdaq was down by 3% this week.

Apple has so far been listed as the major culprit for the fall. Shares of Apple on Thursday fell 2.7% and are down by nearly 4% for the week.

Seeing the last week's solid earnings it appeared as if Facebook, the popular networking site, was not ready to face the situation. Its shares went down 3.4% for the week, although they are up about 1 % for the year.

The double-digit stock decline faced by Twitter and LinkedIn showed that investors have very less patience for weakness in highly valued social media stocks.

Twitter attributed its revenue shortfall to weaker-than-expected contributions from some of its newer advertising products.

Twitter faced the shortfall at a time when investors were looking for stronger advertising growth to make up for less-than-stellar user numbers.

Sterne Agee analyst Arvind Bhatia said in a statement that he was not surprised seeing Wall Street's severe reactions.

Market experts said that weak view of LinkedIn resulted from changes in currency exchange rates, costs of its pending acquisition of Lynda. com and other items.