LinkedIn shares got slaughtered after revealing disappointing guidance during its earnings report last week, but one trader thinks it's setting up for a major bounce.
Guy Adami of "Fast Money," pointing to what he calls the creation of a textbook head and shoulders pattern, said, "I think we saw a short-term bottom." And despite multiple analysts cutting their price target on the stock, Adami says now is the time to buy while it's trading near three-year lows.
He recommends getting out of the social media stock if it closes below $100 and look to take profits when it hits $150, which would be about a 50 percent jump from current levels.
Adami has no position in LinkedIn.