Market Overview

RBC Downgrades, Hurt By Increasing Competitiveness In Internet Domain Industry


RBC Capital Markets issued a company note on Group Inc. (NASDAQ: WWWW), downgrading the company from Outperform to Sector Perform with a $20 price target.

Analysts Rohit Kulkarni and Mark Mahaney wrote, “The company operates in a highly fragmented market and offers one of the most comprehensive packages of services in the space. However, WWWW is working through a variety of issues which have impacted ARPU and Revenue growth over the past 6-9 months. We would want to see stabilization & growth in ARPU, clear signs of consistent execution in DIY/DIWM offerings, and stable marketing spend in order to be more constructive. At current levels, we believe the shares are roughly fairly priced.”

Related Link: This Analysts Sees Potential Threat To From Godaddy's IPO has reported multiple quarters of revenue and earnings misses. This can be partly attributed to a $20 million revenue impact after exiting the National Accounts business and a $10 million loss in revenue from softness in premium domains. RBC believes that an increase in marketing by competitors will further erode’s market share.

Furthermore, analysts believe that there may be a growing consumer adoption of self service Do-it-yourself website creation tools which will hurt the company’s core business platform.

Shares of recently traded at $18.56, down 5.1 percent.

Latest Ratings for WWWW

Jun 2015UpgradesNeutralBuy
Jun 2015DowngradesBuyNeutral
May 2015UpgradesHoldBuy

View More Analyst Ratings for WWWW
View the Latest Analyst Ratings

Posted-In: Mark Mahaney RBC Capital Markets Rohit KulkarniAnalyst Color Downgrades Analyst Ratings


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