Tremor Video stock falls nearly 50% following Q3 earnings report
Revenue growth of 17 percent not enough to stem losses, fears of online video competition
On Thursday of last week Tremor Video announced Q3 earnings after the bell. That afternoon the company’s stock rose of over $10 a share, before falling back a bit. But by Friday morning shares of Tremor Video had fallen nearly 50 percent, closing the week’s trading at $4.72.
The report itself was rather benign looking: revenue was $35.3 million, up 17 percent over the same quarter a year ago. Losses grew, though, to $2.2 million versus $1.7 million.
Investors fear that companies like Tremor Video will find it hard to compete going forward. This is backed up by the company’s relatively weak revenue guidance for the fourth quarter – between $29.5 million and $30.5 million. As a result, Tremor’s stock got downgraded – Oppenheimer, for instance, downgraded the stock to “market perform” from “outperform”.– and so the rush was on to dump the stock.