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Here’s the big problem with LinkedIn: Analysts

Despite having easily beat Wall Street expectations, LinkedIn's latest quarterly report shows growth may be decelerating, two analysts said Friday.

"You could look at margins that are showing some compression, you could look at some flattening in the user growth on a sequential basis, and I think when you take all those things together and you put it against the fact that LinkedIn is still a growth stock, I think it's just difficult to justify the current valuation," Ken Sena, an analyst at Evercore ISI, said in a CNBC "Squawk Alley" interview.

The professional social media site on Thursday reported second-quarter earnings per share of 55 cents, while analysts had expected 30 cents a share on the top line. The company's $711.7 million in revenue was also above estimates.

LinkedIn shares soared about 12 percent in after-hours trading Thursday before turning sharply lower.

"The stock has had a nice rebound off the disappointing Q1, ran up into the quarter. The market was expecting a nice core organic beat, and they did not get that," Mark May, an analyst at Citi, said in a CNBC "Squawk on the Street" interview.

"The company lowered its guidance for the year. This is the second quarter in a row that the company had to lower its guidance," he said, adding that these factors combined show a deceleration in growth within LinkedIn, and that justifying its value was becoming increasingly difficult.

LinkedIn shares were down more than 9 percent in afternoon trading Friday.

Disclosure: Citigroup Global Markets has a position of $1 million or more in debt securities of LinkedIn and received compensation for products and services other than investment banking services. Evercore ISI and/or its affiliates may have, or have had, business relationships with LNKD.