Analyst Predicts "Rocky Performance" For Marchex
Shares of direct navigation company Marchex fell Tuesday after JMP Securities analyst William Morrison downgraded the stock from "Market Outperform" to "Market Perform" and predicted "a few quarters of rocky performance".
The Seattle-based company's stock dropped 71 cents, or 5.72 percent, and closed at $11.70 on the Nasdaq Stock Market, only minutes after setting a new 52-week low of $11.56. Shares have traded as high as $26.29 in the past year.
"We recommend that investors sit on the sidelines until we begin to see revenue accelerate and margins expand, which could happen toward the fourth quarter of 2007 and into 2008," Morrison wrote.
Daily Domainer comments:
This recommendation comes a bit late because Marchex shares have been falling ever since they reached their peak of $26.29 per share in January 2006. We will see how this analyst's predictions play out over the coming year.
Marchex owns more than 200,000 domains, including the portfolio they bought from domainer Ultsearch (Yun Ye) for $164.2 million in 2005.
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