As news rolled out of Microsoft Incorporated’s (MSFT) $26.2 billion acquisition, LinkedIn Corporation (LNKD) surged upwards of 46% during Tuesday trading hours as investors jumped on the future potential that is likely to be realized as LinkedIn piggybacks on the substantial resources of Microsoft.

However bullish the market may be, Castle Rose’s Chief Investment Analyst was on hand to present a warning to investors against over committing to LinkedIn positions as business synergies may not be as attractive as expected.

“It’s a sizable acquisition, that on the face of things appears to make sense. However the acquisition deal brings with it a sizable degree of financial risk as dollar for dollar LinkedIn does not yet perform as efficiently as other socials platforms with similar capitalization.”

“The most obvious a glaring metric with this deal is the staggering difference in the $4.6 billion book valuation of LinkedIn with that of the acquisition price reported at $26.2 billion. The gap here will negatively affect Microsoft’s overall equity value forcing investors to ponder how the merger will work to recover such a deficit”

In a press statement release by Microsoft CEO, Satya Nadella, confidence in the acquisition focused on how both businesses would benefit through the interaction of existing competencies. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”

Castleton Rose, the Hong Kong based provider of financial planning and investment management services immediately downgraded LinkedIn to ‘Hold’ claiming that “short selling of profits, whilst tempting, may not be the best long-term decision investors can make as strategy remains very unclear as LinkedIn for the time being is likely to maintain its brand and independence for the foreseeable future,” commented Castleton Rose’s Chief Investment Analyst