ChannelAdvisor's 7 Downgrades After Trimming Revenue Estimates - Alphabet (NASDAQ:GOOG)

ChannelAdvisor Corp ECOM is down more than 52 percent on Tuesday, January 13, after the company trimmed its revenue estimate for the fourth quarter, falling substantially short of expectations.

CEO Scot Wingo explained that the shortfall was caused by the change in the company’s business mix. As the company shifts to bigger clients, volume discount expectations increase, putting pressure on the top line. However, Wall Street does not seem convinced, as seven major research firms downgraded the stock same day.

Below is a closer look at these changes:

Pacific Crest: Downgraded the stock from Outperform to Sector Perform and removed its $29 price target.
Stifel Nicolaus: Demoted the equity from Buy to Hold, eliminating the $30 price target.
Janney Capital: Changed its recommendation from Buy to Neutral, setting a $16 price target.
Baird: Shifted its rating from Outperform to Neutral, and accompanied it with an $18 price target.
Deutsche Bank: Modified its grade from Buy to Hold, fixing a $16 price target.
Goldman Sachs: Downgraded Channel Advisor from Neutral to Sell ($14).
Raymond James: Altered its score from Outperform to Market Perform.

Shares are currently trading around $10, at the lowest price since the company went public. Despite the bearishness, all of the price targets fixed imply plenty of upside potential. So, one question lingers: At the current price point, is an attractive entry point open despite the bad news and downgrades?

Jim Cramer

Jim Cramer also weighed in on ChannelAdvisor on CNBC's “Stop Trading” segment.

“The big guys kind of figured out they don’t need the company’s advice,” Cramer said.

“What do they figure now? Give their money to

Google IncGOOGGOOGL

,” he added.

He concluded stating, “ECOM’s loss is Google’s gain.”

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