Digital River Stock: A River Of Losses

Digital River (DRIV), the builder of e-commerce sites came out with its quarterly results for the June 2013 ending quarter last evening. The silver lining for the quarter was the 2% growth in revenues on a Y/Y basis. The company did beat the high-end of the guidance for both revenues and earnings. However the net losses of -$0.9 million and the Earnings per Share of -$0.03 does not bode well for the firm. The way we look at things, we love profits and cash and unfortunately, Digital River stock hasn’t generated either of those. Though the quarter is a positive in terms of guidance beat, we don’t think Digital River stock is one we would like to invest in.

WebMD Stock

Post the release of earnings preview by WebMD (WBMD), a leading source of health information provider, the WebMD share price increased by more than 28% since July 12th. The company, in its earnings preview, indicated that the second quarter revenue will be between $124 million and $125 million, improving its own earlier guidance of $115 million. However, WebMD bottom line isn’t as attractive with a mere net income margin of 2.4%. Investors remain optimistic about online healthcare industry’s scope and prospects. We would be adding WebMD stock to our positive watch list, depending on the next quarter’s performance.
WebMD stock chart
Source: WebMD stock price chart by Amigobulls

Quinstreet Stock On Par With Street Estimates

Quinstreet (QNST), a vertical marketing and a media company, reported moderate results in line with the estimates. Although the company met the street’s expectations, its volatile revenue and lack of profitability are total turn offs. Right now, the debt is so high that even the company’s operating levers are being offset by interest expenses. Given the negative EPS of 4 cents and lack of visibility in the near-term, we wouldn’t be betting our money on Quinstreet stock.
Quinstreet  revenue chart
Source: Quinstreet revenue chart by Amigobulls

Google Stock

Google (GOOG) introduced a sleeker version of Nexus 7 tablet and is all set to fight with Apple (AAPL) iPad. In the mobile computing market, fancier the feature, fancier are the prices and hence profits. Good going Google. Keep it up! But on the flip side, Google’s bread and butter - ad clicks, seemed to have dropped by a massive 6% as per the latest financial results. It is the diversification into different products and services that Google offers is going to spearhead the entire domination in the internet market.

Expedia Stock

Expedia (EXPE) gained 3.2% yesterday post a big post-earnings fall. Analysts and investors are questioning whether the shares of Expedia and TripAdvisor (TRIP) are valued at right prices given the cut-throat competition in the industry.

Upcoming Earnings Call

Upcoming earnings call on Aug 01, 2013: Ctrip (CTRP), LivePerson (LPSN), Open Text Corp (OTEX) and Perficient (PRFT).

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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