Morning Commentary: LinkedIn loses luster post-earnings; FireEye ticks up despite CFO departure

By Stephanie N. Rotondo

Phoenix, July 31 – Another round of earnings was the catalyst for Friday’s major movers in the convertible bond market.

LinkedIn Corp.’s 0.5% convertible notes due 2019, for instance, were seen falling as much as 7 points, according to a trader.

“The earnings, I guess, disappointed,” he said, quoting the issue in a 101 to 101.375 context.

The trader also noted that the company’s stock (NYSE: LNKD) was off about $22.00 in early trading.

The professional social media platform released its earnings after the close on Thursday. And while the figures beat estimates – and the stock initially ran up – investors were pulling back in Friday morning trading as a second glance indicated only “so-so” forward guidance.

Meanwhile, FireEye Inc.’s convertible bonds were inching higher following that company’s earnings release.

FireEye also announced Michael Sheridan, chief financial officer, was leaving his post.

A trader saw the 1% convertible notes due 2035 trading around 105, which was up from levels around 104.25 previously. He also pegged the 1.625% convertible notes due 2035 at 104 bid, 104.75 offered.

The stock (Nasdaq: FEYE), however, was off more than 5.5% at mid-morning.

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