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.