Tech investors get painful reality check

LinkedIn signage is displayed outside the company's headquarters in Mountain View, California.
David Paul Morris | Bloomberg | Getty Images
LinkedIn signage is displayed outside the company's headquarters in Mountain View, California.

Tech investors are bearing up for a painful reality check.

LinkedIn's market value fell by 44 percent on Friday after executives said they expect its top line to grow by some 20 percent this year–a third lower than estimates. Rivals were also hit. Worsening prospects are finally prompting shareholders to question the rosy adjusted-earnings scenarios often touted for tech companies. With valuations still high, more red ink lies ahead.