AUTO - AutoWeb stock plummets 65% as Barrington Research downgrades following dismal Q1

AutoWeb (NASDAQ:AUTO) has dropped over -65%, with shares tanking after the company swung to a loss in Q1, prompting Barrington Research to downgrade the stock to underperform from market perform. The digital marketing company posted a Q1 net loss of -$4.3M, compared to a $310,000 net gain a year ago. Adjusted EBITDA also swung to a loss of -$2.8M, compared to $151,000 earlier. AutoWeb attributed the loss to higher operating expenses and a bigger chunk of revenue coming from the lower-margin used vehicle acquisition business. CEO Jared Rowe commented: "The overall environment within the automotive market continued to degrade during the first quarter, triggering a 50-year low in buying conditions for vehicles [...] Leads continued to be challenged due to the persistently low new vehicle inventory, while our click traffic increased as we grew our total number of publishers in an environment where consumers are searching far and wide for favorable

For further details see:

AutoWeb stock plummets 65% as Barrington Research downgrades following dismal Q1