PUBM - Perion Network: Recent Microsoft Bing Changes Blamed For Earnings Warning
2024-04-08 17:16:08 ET
Summary
- Israel-based provider of digital advertising solutions, Perion Network Ltd. has perplexed market participants with a stunning Q1 earnings warning.
- Reduced guidance is largely attributed to a decline in search advertising activity as a result of recent changes in advertising pricing and mechanisms implemented by Microsoft Bing.
- Based on the numbers provided, Microsoft-related revenue might come in 90% lower than initially expected for this year.
- While valuation has reached bargain levels, material uncertainties regarding the company's path going forward in combination with management concerns are likely to keep the stock in the penalty box for the time being.
- Consequently, I am resuming coverage of Perion Network stock with a "Hold" rating.
Note:
I have covered Perion Network Ltd. ( PERI ) previously, so investors should view this as an update to my earlier articles on the company. ...
Perion Network: Recent Microsoft Bing Changes Blamed For Earnings Warning